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A Weakness in the Classical Economic Claim That a Recession

Question 29

Multiple Choice

A weakness in the classical economic claim that a recession is caused by a decrease in labor demand curve is


A) that labor demand never changes
B) that labor demand increases during a recession
C) that labor supply decreases during a recession
D) the confusion between a shift of the labor demand curve and a movement along that curve
E) the impossibility in the classical model of total spending ever being deficient

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