According to Keynes, Involuntary Unemployment Is Possible Because of

question 135

Multiple Choice

According to Keynes, involuntary unemployment is possible because of

• A)the existence of capital markets.
• B)long-term labor contracts and the existence of labor unions.
• C)government interference in the market economy.
• D)inflation.

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Definitions:

Human Capital

The collective skills, knowledge, abilities, and experience of an individual or workforce, representing a form of wealth that can be directed towards economic activities.

Physical Capital

Tangible assets that are used in the production of goods and services, such as machinery, buildings, and equipment.

Nonmonetary Considerations

Factors influencing decisions that are not based on money or financial gain, such as ethical values, social responsibilities, or personal preferences.

Depreciation Rates

The rate at which an asset loses its value over time, often used for accounting and tax purposes to reflect the wear and tear, aging, or obsolescence of physical or intangible assets.