Some economists argue that persistently high unemployment rates in many European countries in the early 1980s resulted from
A)the movement to a common currency.
B)the sharp decline in oil prices.
C)low inflation rates.
D)hysteresis.

Question

Quizplus · Accepted Answer

Hysteresis refers to the idea that long periods of unemployment can have a lasting effect on the labor market, making it difficult for workers to find jobs even after the economy improves. Some economists argue that this is what caused persistently high unemployment rates in many European countries in the early 1980s, as these countries had experienced high unemployment for a prolonged period of time. The other options are not directly related to the issue of high unemployment rates in the early 1980s.

Some Economists Argue That Persistently High Unemployment Rates in Many