Economists Who Are Skeptical of Hysteresis in Europe During the 1980s

Multiple Choice

Economists who are skeptical of hysteresis in Europe during the 1980s and 1990s cite all of the following as reasons for persistently high unemployment in Europe EXCEPT

A) generous unemployment benefits.
B) restrictions on firms' ability to hire and fire workers.
C) the existence of an ongoing recession.
D) high tax rates.