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A Good Example of an Outcome That Could Lead to "Hysteresis

Question 38

Multiple Choice

A good example of an outcome that could lead to "hysteresis" in the labour market is:


A) new entrants to the labour market have difficulty finding jobs, and as a result have a higher rate of unemployment throughout their working lives.
B) new entrants to the labour market have a high rate of unemployment due to technological change.
C) a negative demand shock persists.
D) a negative supply shock persists.
E) unemployment is generated by an increase in the minimum wage.

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