2598EconomicsMedium
An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ________?
Ainterest rate, market for loanable funds
Bwage rate, labor market
Cprice level, aggregate economy
Dtax rate, government budget
Correct answer
B. wage rate, labor market
Explanation
The correct answer is wage rate, labor market.