Classical Economists Suggest That Unemployment Is a Short-Lived Phenomenon Because

question 249

Multiple Choice

Classical economists suggest that unemployment is a short-lived phenomenon because

• A) wages adjust quickly to equilibrate quantity of labor demanded with quantity of labor supplied.
• B) wages remain unchanged when the quantity of labor demanded exceeds the quantity of labor supplied.
• C) wages remain unchanged when the quantity of labor supplied exceeds the quantity of labor demanded.
• D) wages tend to rise slowly when the quantity of labor demanded equals the quantity of labor supplied.

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Definitions:

Capital Requirements

The minimum amount of capital a bank or other financial institution must hold as required by its financial regulator.

Financial Institutions

Organizations that provide financial services, including banks, credit unions, insurance companies, and investment firms.

Regulatory Agencies

Government authorities responsible for enforcing specific laws and regulations to protect the public interest in various sectors.

Annual EPS

The amount of a company's profit allocated to each outstanding share of common stock over a one-year period.