What is the main reason for the persistently high unemployment in the US and the Euro area since the crisis?

Question

Quizplus · Accepted Answer

The persistently high unemployment in the US and the Euro area since the crisis is mainly due to low output growth, which resulted in a lack of job openings and opportunities for job seekers. Low consumption growth (A) and high consumption growth (E) may affect employment, but to a lesser extent compared to output growth. Low unemployment benefits (B) may discourage individuals from actively seeking employment, but cannot explain the persistently high unemployment rates in the long term. High output growth (D) can lead to low unemployment rates, not high unemployment rates. Therefore, the best choice is C.

What Is the Main Reason for the Persistently High Unemployment