Evidence Shows That Many People Who Delay Searching for a Job

question 34

Multiple Choice

Evidence shows that many people who delay searching for a job for a year or longer after they are laid off

• A)find it more difficult to find new employment than if they had searched for a new job soon after they were laid off.
• B)find it easier to find new employment than if they had searched for a new job soon after they were laid off.
• C)find that they have little to no chance to find new employment after being unemployed for so long.
• D)find that the extra unemployment benefits they receive during their extended period of unemployment more than make up for the difficulty in finding a job once they decide to re-enter the workforce.

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Definitions:

Animal Spirits

A term used to describe human emotions and psychological factors that drive consumer confidence and economic decision-making.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices.

Investment

The process of distributing usually monetary resources with the goal of earning income or making a profit.

Keynes

Refers to John Maynard Keynes, a British economist whose theories on government spending and monetary policy revolutionized economic thought and policy, especially during economic recessions.