The primary reason inflow rates to unemployment decline slowly following a surge in job destruction is that
A) firms fail to perceive the end of the recession in a timely fashion and continue laying off workers.
B) decreased spending by terminated workers reverberates throughout the economy.
C) displaced workers may take temporary work, forcing themselves to become unemployed again shortly.
D) workers expect the recession to continue and fail to search soon enough for new employment.
E) b and c.
Correct Answer:
Verified
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