Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

What does hysteresis unemployment mean?

  • Apeople who become temporarily unemployed because it takes a short period of time to find a job after they leave school
  • Bpeople who become unemployed when there is a recession but who will find employment as the economy comes out of recession
  • Cpeople who become unemployed for a long period of time due to a loss of job skills and work experience while unemployed
  • Dpeople who become unemployed when established firms close and new firms are created as technology advances

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