In the view of the classical school, unemployment:
A)is a permanent condition.
B)disappears when everyone who is willing to work at the equilibrium wage finds employment.
C)exists because people do not interfere with the competitive process.
D)is only temporary because all wages and prices are rigid.
E)is necessary and good for the economy.

Question

Quizplus · Accepted Answer

The classical school believes that unemployment disappears when the labor market reaches equilibrium, meaning everyone willing to work at the equilibrium wage is employed.

In the View of the Classical School, Unemployment