The theory of unemployment "hysteresis" is associated with all of the following, except that:
A) A natural rate of unemployment can rise in response to high actual unemployment.
B) In a recession, many of the long term unemployed experience a decline in the intensity of their search effort.
C) Individuals who have been unemployed for a long time may suffer a deterioration in their labour market skills.
D) Short-run adverse shocks to the labour market may have permanent effects.
E) Efficiency wages cause the actual wage paid to be higher than the equilibrium wage.
Correct Answer:
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Q8: The condition for the equilibrium level of
Q9: All of the following are considered to
Q10: The persistence of high levels of unemployment,
Q11: In the efficiency wage model of the
Q12: Implicit contract theory is based on the
Q14: According to the theory of job search,
Q15: Structural unemployment occurs because:
A) when workers and
Q16: Frictional unemployment arises:
A) whenever the number of
Q17: Canada's unemployment insurance system is thought to
Q18: Which of the following is NOT derived
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