For a Number of Years Canada and Many European Countries

question 66

Multiple Choice

For a number of years Canada and many European countries have had higher average unemployment rates than the United States.The Phillips curve suggests that these countries

• A)have higher average inflation rates than the United States.
• B)have long-run Phillips curves to the right of the United States'.
• C)may have less generous unemployment compensation or lower minimum wages.
• D)All of the above are consistent with the evidence on unemployment rates.

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Definitions:

Manufacturing Plant

A facility that is equipped with machinery and staff for the purpose of producing goods on a large scale.

Cost Function

A mathematical relationship that describes how the total cost of production changes with varying levels of output.

Cartel Arrangement

An agreement between competing firms or countries to control prices, limit supply, or restrain competition in a particular market.

Manufacturing Plant

A facility used for the industrial production of goods, including assembly lines and machinery for manufacturing products.