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

question 13

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.

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Definitions:

Mental Workouts

Exercises aimed at improving cognitive functions such as memory, attention, and problem-solving skills.

Cognitive Fitness

A state of optimized ability to remember, learn, plan, and adapt to changing circumstances.

Physical Fitness

A state of health and well-being achieved through regular physical activity, diet, and proper rest, enabling the performance of daily tasks with vigor.

Work-related Stereotype

Preconceived and oversimplified beliefs or ideas about certain professions or roles in the workplace.