Following a Significant Recessionary Period in Which There Were Periodic

Multiple Choice

Following a significant recessionary period in which there were periodic wage freezes, workers negotiate higher wages. However, the higher wages lead to a decrease in the number of new workers getting hired, so unemployment persists in the region. The scenario described here is an example of:

A) efficiency wages.
B) frictional unemployment.
C) hysteresis.
D) a government mandated minimum wage.