Economists who are skeptical of hysteresis in Europe cite all of the following as reasons for persistently high unemployment in Europe EXCEPT
A) generous unemployment benefits.
B) restrictions on firms' ability to hire and fire workers.
C) the existence of an ongoing recession.
D) high tax rates.

Question

Quizplus · Accepted Answer

The existence of an ongoing recession cannot be cited as a reason for persistently high unemployment in Europe because it is already a given that there is a recession. Economists who are skeptical of hysteresis argue that the main reasons for persistent unemployment are generous unemployment benefits, restrictions on firms' ability to hire and fire workers, and high tax rates.

Economists Who Are Skeptical of Hysteresis in Europe Cite All