Which of the following explains why employment only rises at a slow pace at the end of a recession?
A)Firms are hesitant to rehire laid off workers as they continue to operate below capacity.
B)Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
C)Discouraged workers return to the labor force,and this makes the unemployment rate fall.
D)Discouraged workers leave the labor force,and this makes the unemployment rate rise.

Question

Quizplus · Accepted Answer

Firms are typically hesitant to rehire laid off workers at the end of a recession because they may still be operating below capacity and may not have enough demand to justify rehiring all previously laid off workers. This leads to a slow pace of employment growth.

Which of the Following Explains Why Employment Only Rises at a Slow