In the Classical Model

question 322

Multiple Choice

In the classical model,

• A) unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
• B) unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers.
• C) wages will go up but never go down.
• D) full employment will never be reached.

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Definitions:

Acquisition

The act of one business securing the bulk or all of another company’s equity to take over control.

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the company's equity.

Proxy Contests

A competition for the proxy votes of shareholders, typically aimed at gaining control of the company's board of directors.