Aggregate Supply, Unemployment And Inflation
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- Aggregate Supply, Unemployment And Inflationeconomics-mcqs › aggregate-supply-unemployment-and-inflation
- Published
- 3 Jun 2019
- Last updated
- 28 May 2026
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According to classical economic theory, what is the reason some individuals remain unemployed?
Multiple choice question for Aggregate Supply, Unemployment And Inflation. Select an option, then review the explanation below.
Explanation
Classical economists argue that unemployment occurs because individuals voluntarily choose not to work at the going market wage. This means that those who are unemployed have made a deliberate decision not to accept jobs at the current wage level, distinguishing this perspective from other views where unemployment is due to lack of available jobs or other factors.
More Aggregate Supply, Unemployment And Inflation MCQs
Practice related questions from the same subject.
- 1.How would eliminating income tax likely affect the total employment and the natural rate of unemployment?
- 2.Which type of economic policies aim to decrease unemployment by weakening union influence, implementing tax reductions, lowering unemployment benefits, and providing investment incentives?
- 3.At any given real wage, the equilibrium unemployment rate is calculated as the difference between which two factors?
- 4.What type of unemployment affects an individual who loses their job due to a decline in an industry?
- 5.What factor can cause the short-run Phillips curve to shift position?