Unemployment hysteresis refers to the fact that
A) high rates of unemployment tend to perpetuate themselves
B) when unemployed, individuals reduce their consumption, causing firms to lay off more workers and therefore cyclical unemployment increases even more
C) individuals who experience long spells of unemployment often get desperate and take jobs for which they are overqualified
D) politicians often react irrationally to news of high unemployment and stimulate the economy causing unnecessary political cycles
E) none of the above
Correct Answer:
Verified
Q8: The spell of unemployment is
A)defined as the
Q9: The duration of unemployment depends on
A)how organized
Q10: The relationship between job vacancies and the
Q11: Which of the following does NOT affect
Q12: Which of the following can affect the
Q14: Frictional unemployment is
A)the unemployment that exists even
Q15: Concerns about high unemployment
A)are not justified since
Q16: Over the last five decades, the natural
Q17: Which of the following statements is FALSE?
A)there
Q18: Which of the following statements is TRUE
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