Unformatted text preview: et: Basic Concepts Skill: Definition 14.2 The 1 M ul ti pl e C 1) h o i c e Changes in the ________ market affect the shape of the short run aggregate supply curve. A) money B) labor C) goods D) financial Answer: B Diff: 1 Topic: The Classical View of the Labor Market Skill: Conceptual AACSB: Reflective Thinking 2) Accordin g to Classical economists, the only types of unemployment that exist in an economy are A) structural and frictional unemployment. B) cyclical and C) frictional. seasonal and D) cyclical. frictional and seasonal. Answer: A Diff: 1 Topic: The Classical View of the Labor Market Skill: Fact 3) Accordin g to Classical economists, excessive unemployment does not persist in the economy because A) wages will B) always adjust to ensure equilibrium in the labor market. the labor C) demand does not change in the economy. the labor supply does not change in the economy. D) interest rates always change to insure equilibrium in the money market. Answer: A Diff: 2 Topic: The Classical View of the Labor Market Skill: Fact Refer to the information provided in Figu...
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- Fall '13
- Macroeconomics, AACSB, Reflective thinking, labor market, Conceptual AACSB