Which of the Following Best Explains Why Unemployment Rates Are

question 22

Multiple Choice

Which of the following best explains why unemployment rates are higher in the European economies than in the United States?

• A)More Europeans go to school full time and are therefore not able to participate in the labor market.
• B)Unemployment benefits are more generous in Europe than in the United States.
• C)Workers in Europe are less productive than workers in the United States.
• D)European industries pay a lower wage rate than industries in the United States.

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Definitions:

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a standard of comparison.

Current Year

Refers to the ongoing calendar year at the time of the statement or document.

Business Cycle Troughs

The lowest point in the business cycle, marking the transition from the end of a recession to the start of an expansion.

CPI

The Consumer Price Index (CPI) calculates the average price of a specific set of consumer items and services, including food, transportation, and medical care, which is used to gauge inflation by examining their weighted average cost.