Which of the following is thought to be the primary reason for the existence of the unemployment rate gap between the United States and Canada?
A) There has been a relative increase among Canadians in the fraction of non-working time spent searching for work relative to Americans.
B) There is a longer duration of unemployment in Canada relative to the U.S.
C) The aggregate demand conditions tend to be more favourable in the U.S.
D) The labour force in Canada has a higher concentration of demographic groups that tend to exhibit higher rates of unemployment.
E) Wages are higher in Canada, which reduces the quantity demanded for labour.
Correct Answer:
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