Why Do the European Countries Like France, Germany, Italy and Spain

question 103

Multiple Choice

Why do the European countries like France, Germany, Italy and Spain have higher unemployment rates than other industrialized nations?

• A)Low interest rate and low capital formation
• B)Minimum wages are lower in these European countries compared to the other industrialized nations
• C)Trade unions are not so prominent in these European countries
• D)Stringent policies adopted by the governments of these nations against termination of workers by firms
• E)Nominal wages are more flexible in these nations compared to the other industrialized nations

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