It is often true that as the economy begins to recover from a recession, the unemployment rate rises because
A. as the economy initially recovers from a recession the demand for goods and services falls, so the demand for workers falls.
B. as the economy begins to recover from a recession, workers who were previously discouraged about their chances of finding a job begin to look for work again.
C. as the economy begins to recover from a recession because of the errors in the way the data are collected.
D. as the economy initially recovers from a recession, firms do not immediately increase the number of workers they hire. Firms wait to hire more individuals until they are convinced that the recovery is strong.
Answer:B
It is often true that as the economy begins to recover from a recession, the unemployment rate rises because
A. as the economy initially recovers from a recession the demand for goods and services falls, so the demand for workers falls. B. as the economy begins to recover from a recession, workers who were previously discouraged about their chances of finding a job begin to look for work again. C. as the economy begins to recover from a recession because of the errors in the way the data are collected. D. as the economy initially recovers from a recession, firms do not immediately increase the number of workers they hire. Firms wait to hire more individuals until they are convinced that the recovery is strong.