Unemployment Hysteresis Refers to the Fact That

Multiple Choice

Unemployment hysteresis refers to the fact that

A) high rates of unemployment tend to perpetuate themselves
B) when unemployed, individuals reduce their consumption, causing firms to lay off more workers and therefore cyclical unemployment increases even more
C) individuals who experience long spells of unemployment often get desperate and take jobs for which they are overqualified
D) politicians often react irrationally to news of high unemployment and stimulate the economy causing unnecessary political cycles
E) none of the above