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Hysteresis in the Labour Market Refers To

Question 2

Multiple Choice

Hysteresis in the labour market refers to:


A) the volatile relationship between actual unemployment and its natural rate.
B) an increase in actual unemployment translates into no effect on the natural rate of unemployment.
C) an increase in actual unemployment translates into an increase in the natural rate of unemployment.
D) the lack of relationship between actual unemployment and its natural rate.
E) an increase in actual unemployment translates into a decrease in the natural rate of unemployment.

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