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Which of the Following Explains the Cause of the Change

Question 188

Multiple Choice

Which of the following explains the cause of the change in the unemployment rate during the early stages of recovery?


A) At the end of a recession the number of new firms being created (and therefore hiring workers, falls.
B) Firms rapidly hire new workers at the first sign of on an increase in demand for their goods.
C) Discouraged workers return to the labour force and this makes the unemployment rate fall.
D) Discouraged workers return to the labour force and this makes the unemployment rate rise.
E) There is a rise in the number of new workers entering the labour force for the first time.

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