Which of the following best explains the cause of the change in the unemployment rate at the end of a recession?
A) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
B) Firms are hesitant to rehire laid-off workers as they continue to operate below capacity.
C) Discouraged workers begin to return to the labor force, causing the unemployment rate to fall.
D) Frictionally unemployed workers find it easier to gain employment, lowering the natural rate of unemployment.
B
You might also like to view...
If the change in the y-axis variable is 6 and the change in the x-axis variable is 5, the slope of this line is 6/5
Indicate whether the statement is true or false
Suppose an employer has monitoring devices established so that the probability of an employee being caught while shirking is 0.2. If the gain to the employee from shirking is $1,000, how large a bond will deter shirking?
What will be an ideal response?