In the Classical Model, an Increase in the Unemployment Rate

question 253

Multiple Choice

In the classical model, an increase in the unemployment rate

• A) will persist when the reduction in output is caused by a reduction in aggregate demand.
• B) will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand.
• C) will likely be temporary.
• D) is a signal of demand-pull inflation.

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Definitions:

Issue of Shares

The issue of shares refers to the process by which a company distributes new shares to shareholders, which can raise capital for the company.

AASB 101

An Australian Accounting Standard Board regulation that sets out the overall requirements for the presentation of financial statements, guidelines for their structure, and minimum requirements for their content.

Non-Controlling Interests

A minority stake in a company that is not enough to exert control over it.

Comprehensive Income

The change in equity of a company during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.