In the classical model, what occurs if a wage of 20/hour results in unemployed workers?
A) The wage rate will drop, more workers will be hired, and the unemployment rate falls.
B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived.
C) The workers will go on strike to demand that more jobs be created.
D) The government will step in and order firms to hire more workers.
Question 2
Long-run aggregate supply and a country's production possibility curve (PPC)
A) are inversely related. B) are closely related.
C) have no relationshi
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