Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
Correct answer: C. disequilibrium
- A. natural
- B. frictional
- C. disequilibrium
- D. structural
Explanation
When real wages remain above the equilibrium level, the quantity of labour supplied exceeds the quantity demanded, producing disequilibrium unemployment. Structural and frictional unemployment have different causes.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
The natural rate of unemployment is generally thought of as the ?
As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
Aggregate demand is the total demand for all goods and services in an economy from ?
Classifying discouraged workers as unemployed would ?
Since 1998 many government have defined unemployment using ?