The Theory of Unemployment "Hysteresis" Is Associated with All of the Following

Multiple Choice

The theory of unemployment "hysteresis" is associated with all of the following, except that:

A) A natural rate of unemployment can rise in response to high actual unemployment.
B) In a recession, many of the long term unemployed experience a decline in the intensity of their search effort.
C) Individuals who have been unemployed for a long time may suffer a deterioration in their labour market skills.
D) Short-run adverse shocks to the labour market may have permanent effects.
E) Efficiency wages cause the actual wage paid to be higher than the equilibrium wage.