In the Classical Model, What Adjusts to Eliminate Any Unemployment

question 149

Multiple Choice

In the classical model, what adjusts to eliminate any unemployment of labor in the economy?

• A) the average price level
• B) the interest rate
• C) the real rental price of capital
• D) the real wage

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Definitions:

Experiment

A method of research in the sciences or social sciences in which variables are manipulated to observe the effect on some behavior or mental process.

Stress

The body’s response to any demand or challenge, which can be physical, mental, or emotional, and influences the state of both mental and physical health.

Eating Habits

Patterns or behaviors surrounding how and what individuals consume, often influenced by cultural, familial, and personal factors.

Independent Variable

The variable in an experimental setting that is manipulated or changed to observe its effect on a dependent variable.