Which of the Following Best Explains the Cause of the Change

Multiple Choice

Which of the following best explains the cause of the change in the unemployment rate at the end of a recession?

A) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
B) Labour hoarding by firms results in an unemployment rate that is not fully responsive to increasing output.
C) Discouraged workers begin to return to the labour force, causing the unemployment rate to fall.
D) Frictionally unemployed workers find it easier to gain employment, lowering the natural rate of unemployment.