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According to Classical Economists, Excessive Unemployment Does Not Persist in the Economy

Question 209

Multiple Choice

According to classical economists, excessive unemployment does not persist in the economy because


A) wages will always adjust to ensure equilibrium in the labor market.
B) the labor demand does not change in the economy.
C) the labor supply does not change in the economy.
D) interest rates always change to insure equilibrium in the money market.

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