The Classical Model Explains Away Unemployment as a Long-Run Problem

Multiple Choice

The classical model explains away unemployment as a long-run problem by assuming that

A) coordination in labor markets will occur within an acceptable period of time
B) the economy consists of multiple,coordinated sectors
C) it causes firms to cut back on their long-run production plans
D) what is a problem during one period will seem more like an opportunity for economic growth during another period
E) higher saving will stimulate increased investment