Answered: According to classical economics,…

According to classical economics, Unemployment results from the rigidity of the wage structure and interference with the working of the free market system. Explain how it works.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 7SQP

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According to classical economics, Unemployment results from the rigidity of the wage structure and interference with the working of the free market system. Explain how it works.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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