Which of the Following Is Not Correct

question 130

Multiple Choice

Which of the following is not correct?

• A)Most people who become unemployed will soon find jobs.
• B)In an ideal labor market, wages would adjust to ensure that all workers are always fully employed.
• C)The unemployment rate occasionally falls to zero.
• D)There are always some workers without jobs, even when the overall economy is doing well.

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Definitions:

Rational Expectations School

An economic theory suggesting individuals make predictions about future economic events using all available information and past experiences.

Inflation

The speed at which the general cost level for goods and services ascends, weakening purchase potency.

Policy Change

Adjustments or modifications made to existing rules, regulations, or guidelines within an organization, government, or system.

Monetary Policy

Actions by a central bank to control the money supply and interest rates in order to influence economic activity.