It is often true that as the economy begins to recover from a recession, the unemployment rate rises…
Discouraged workers re-enter active job search during recovery and become counted unemployed, raising the rate if entry outpaces jobs. Falling goods demand contradicts…
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It is often true that as the economy begins to recover from a recession, the unemployment rate rises because
Answer and explanation
Correct answer B
Discouraged workers re-enter active job search during recovery and become counted unemployed, raising the rate if entry outpaces jobs. Falling goods demand contradicts recovery; measurement error is not the systematic mechanism; delayed hiring alone explains weak employment growth rather than necessarily rising measured unemployment.
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UGC NET Economics