9 Views

Question : Which among the following types of unemployment is also known as real wage unemployment?

Option 1: Classical

Option 2: Seasonal

Option 3: Structural

Option 4: Frictional


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Classical


Solution : The correct option is Classical.

Classical unemployment, also known as real wage unemployment, occurs when wages are inflexible and set above the equilibrium level. In this situation, the supply of labour exceeds the demand, leading to unemployment. Classical economists argue that interference in free markets, such as minimum wage laws, contributes to this form of unemployment.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books