Possible reasons why the level of employment remained lower than before the Great Recession began, even three years after the recession ended, includes the following, except:
A) There was an extension of the period of eligibility for unemployment benefits
B) Structural adjustments that were needed were happening very slowly, if at all
C) Worries about rising labor costs were dampening the willingness of firms to increase hiring
D) The production of output continued to decline, so that firms had no real need to increase hiring

Question

Quizplus · Accepted Answer

Option D suggests that the production of output continued to decline, which means that firms had no real need to increase hiring. This option best explains why the level of employment remained lower than before the Great Recession even three years after it ended. Options A, B, and C suggest possible reasons that could have contributed but do not explain the current situation as well as Option D.

Possible Reasons Why the Level of Employment Remained Lower Than