According to the Neoclassical view, involuntary unemployment does not exist can occur if workers do not accept real wage cuts can occur if the minimum wage is too high (above the labour market equilibrium) The neoclassical view was not clear on this point

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
Section: Chapter Questions
Problem 39RQ: What is the neoclassical zone of the SRAS curve? How much is the output level likely to change in...
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Question 11
According to the Neoclassical view, involuntary unemployment
does not exist
can occur if workers do not accept real wage cuts
can occur if the minimum wage is too high (above the labour market
equilibrium)
The neoclassical view was not clear on this point
Transcribed Image Text:According to the Neoclassical view, involuntary unemployment does not exist can occur if workers do not accept real wage cuts can occur if the minimum wage is too high (above the labour market equilibrium) The neoclassical view was not clear on this point
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