Which of the following best explains the cause of the change in the unemployment rate at the end of a recession?

Question

Quizplus · Accepted Answer

During a recession, firms tend to hold onto their existing employees even if demand for their goods decrease. As the economy begins to recover, firms may increase output without necessarily hiring new workers, resulting in a slower decline in the unemployment rate. This phenomenon is called labour hoarding and explains why the unemployment rate may not fully respond to increasing demand for labour.

Which of the Following Best Explains the Cause of the Change