An economic downturn throws millions of people out of work. In some industries, workers who remain employed,

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An economic downturn throws millions of people out of work. In some industries, workers who remain employed, or “insiders,” continue to develop their skills, enabling them to push wages above the level at which less-skilled “outsiders” could be employed. What do you expect to happen to the equilibrium unemployment rate due to hysteresis? Explain your reasoning.

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Principles Of Economics

ISBN: 9781319330156,9781319419769

2nd Edition

Authors: Betsey Stevenson, Justin Wolfers

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