During recessions the unemployment rate in our economy is usually quite high.?

why is this difficult to explain using the classical model?

how could the keynesian model explain it ?

During recessions the unemployment rate in our economy is usually quite high.?

Classical economic assume the that markets find a equilibrium were supply equals demand including labor markets, so there can be no one who wants to work without a job, Keynes provided a mechanism that prevents this from happening.

During recessions the unemployment rate in our economy is usually quite high.? loan

The way the government reports unemployment is misleading.

It only shows people collecting benefits %26amp; seeking work.

Many have run out of benefits %26amp; given up seeking work.

Or they have settled for under-employment at minimum wage.