Firms reduce work hours by 25%. the number of underemployed workers rises as firms respond to the reduction in demand for their products by reducing the hours of each employed person from 40 to 30 hours per week. % b. the number of unemployed workers rises as firms respond to the reduction in demand for their products by laying off ten previously employed workers. %

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.