Why Is There NO Persistent Unemployment in the Classical Model

question 75

Multiple Choice

Why is there NO persistent unemployment in the classical model?

• A) The wage level adjusts to eliminate unemployment.
• B) The interest rate adjusts to eliminate unemployment.
• C) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
• D) Unionization creates job security for workers.

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Definitions:

Bio-Social-Behavioral Shift

The bio-social-behavioral shift refers to the complex interplay of biological, social, and behavioral factors that contribute to changes in an individual over time, particularly during critical development phases.

Developmental Stage

Phases or periods in life characterized by specific physical, psychological, or emotional attributes that define each stage of human development.

Socioeconomic Status

An economic and sociological combined total measure of a person's work experience and of an individual’s or family’s economic and social position in relation to others, based on income, education, and occupation.

Chronic Strain Model

explains how prolonged exposure to stressors can lead to detrimental health outcomes by persistently activating the body's stress response.