The Primary Reason Inflow Rates to Unemployment Decline Slowly Following

question 31

Multiple Choice

The primary reason inflow rates to unemployment decline slowly following a surge in job destruction is that

• A) firms fail to perceive the end of the recession in a timely fashion and continue laying off workers.
• B) decreased spending by terminated workers reverberates throughout the economy.
• C) displaced workers may take temporary work, forcing themselves to become unemployed again shortly.
• D) workers expect the recession to continue and fail to search soon enough for new employment.
• E) b and c.

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