The working-age population in Concordia was estimated to be 6.5 million in a certain year. The country's labor department announced that the total number of unemployed people in the country had gone up to 460,000 during this year while, the total number of people out of the labor force decreased to 2,000,000. Oscar Lewis, a student of labor economics believes that the labor department data is flawed. The government of Concordia adopted expansionary fiscal policies in the last two years with the aim of increasing employment. However, the government has been unable to bring down the unemployment rate in the country. Which of the following, if true, best explains this outcome? A. The number of students who enroll for higher education is decreasing every year. B. Most educated people prefer job options in Concordia compared to opportunities available elsewhere. C. During this period, the country's government reduced the limits on foreign direct investment in key sectors. D. The per capita income of the people in Concordia has been increasing over the years. E. The government implemented a generous welfare plan 3 years ago to support people who cannot find work.

If the government of Concordia implemented a generous welfare plan 3 years ago to support people who cannot find work, it is very likely that nowadays a portion of the population is still being benefited from this plan. This situation will avoid that the unemployment rate in the country will go down, even though the government implemented adopted expansionary fiscal policies.