The Difference in Unemployment Rates Between Europe and the U

question 148

Multiple Choice

The difference in unemployment rates between Europe and the U.S.has been narrowing partly because

• A) tax rates in European countries are generally lower.
• B) economic conditions in Europe and the U.S have been converging.
• C) European and American labor unions have been coordinating their activities.
• D) of a change in labor market policies.
• E) Europe has been making it easier for workers to gain unemployment benefits

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Definitions:

Cost of Borrowing

The interest and any other charges incurred by borrowing money.

Open-Market Purchases

The buying of government bonds by a central bank to inject money into the economy and expand economic activity.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), representing the value of all goods and services produced over a specific period at constant prices.