Long-Run Unemployment in the Classical Model Is Considered to Be

question 227

Multiple Choice

Long-run unemployment in the classical model is considered to be impossible because

• A) the government will intervene to aid the unemployed.
• B) job placement and training programs are rampant in the United States.
• C) flexible prices and wages keep workers fully employed.
• D) the labor supply is horizontal.

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Definitions:

Alimony

Payments one spouse makes to another under a separation or divorce agreement, which may have tax implications.

Recipient Spouse

The spouse who receives alimony or similar payments from the other spouse in a divorce settlement.

Child Support

Payments mandated by a divorce decree or agreement intended for the financial support of the taxpayer's children.

Alimony

Payments made to a spouse or former spouse under a divorce or separation agreement, which may be deductible by the payer and taxable to the recipient under certain conditions.