The Unemployment Rate Does Not Tend to Fall as Soon

question 210

Multiple Choice

The unemployment rate does not tend to fall as soon as the economy pulls out of a recession. Which of the following best explains this?

• A) Firms are holding excess labor, so as the economy pulls out of the recession, firms do not need to hire new workers immediately.
• B) Firms' optimism about the state of the economy increased prior to the economy pulling out of the recession, so firms increased their employment earlier.
• C) Firms are not able to find qualified workers to fill the job vacancies.
• D) During recessionary periods, firms switch to more capital-intensive production techniques, so they do not need to increase employment as the economy pulls out of the recession.

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Definitions:

Skewed

A description of data or distribution that is not symmetrical, leaning more heavily to one side, either to the right or left.

Symmetric

Having proportions that are well balanced or proportions that mirror each other on either side of a central axis.

Distribution Shape

The form or appearance of the graphical representation of a dataset, indicating how data is dispersed or spread.

Standard Deviation

A statistic that quantifies the dispersion or spread of a set of numerical data from its mean.