Multiple Choice
Which of the following explains why the rate of unemployment continues to rise once a recession is over?
A) Discouraged workers leave the labour force.
B) Wages rise faster than productivity increases so firms are reluctant to hire workers.
C) Firms are operating below capacity for some time after the recession is finished.
D) The unemployment rate does not continue to rise after a recession is over.
Correct Answer:
Verified
Correct Answer:
Verified
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