Hysteresis occurs because:
A) people who are unemployed for a long period are lacking the skills needed to find new jobs.
B) people do not like to be employed at current conditions.
C) people prefer to receive unemployment benefits.
D) people who are unemployed for a long period demand more wages.

Question

Quizplus · Accepted Answer

Hysteresis occurs because people who are unemployed for a long period are lacking the skills needed to find new jobs. This creates a downward spiral of long-term unemployment that is difficult to break, leading to a persistent level of unemployment even when the economy improves.

Hysteresis Occurs Because