Which of the following statements is (are)correct? In the insider/outsider model there is

Question

Quizplus · Accepted Answer

The insider/outsider model explains unemployment through various mechanisms: A) describes how insiders (current employees) and their bargaining power can keep wages above the market-clearing level, leading to unemployment. B) acknowledges that cyclical unemployment can occur due to fluctuations in aggregate demand, which is consistent with the model's broader economic context. C) introduces the concept of hysteresis, where past temporary increases in unemployment can lead to structural unemployment due to the erosion of skills or the discouragement of workers, which is also a part of the insider/outsider theory. Thus, all of the statements are correct in the context of the insider/outsider model.

Which of the Following Statements Is (Are)correct? in the Insider/outsider