Q:
      
      
         
            
According to the Classical Theory of Employment, deviations from the state of full employment are
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: A) Purely temporary in nature         
         
Explanation: The classical economists believed in the existence of full employment in the economy. To them, full employment was a normal situation and any deviation from this regarded as something abnormal. According to Pigou, the tendency of the economic system is to automatically provide full employment in the labour market when the demand and supply of labour are equal.
       
      
      
      
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