Which of the following about unemployment is true?
A) The unemployment rates of the major European economies have been lower than the United States during the last decade.
B) The natural rate of unemployment is unaffected by labor market regulations and other dimensions of public policy.
C) High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment.
D) The unemployment rates of Spain and Italy were among the lowest in the world during the past two decades.

Question

Quizplus · Accepted Answer

High unemployment rates over lengthy time periods often indicate underlying structural issues in the economy, such as barriers to labor mobility or insufficient investment in education and training. The natural rate of unemployment can be affected by public policy, such as labor market regulations and social safety nets, which can reduce or increase incentives for individuals to seek work. The unemployment rates of Spain and Italy have generally been higher than the average rates of developed economies in recent decades. The unemployment rates of the major European economies have varied over time and tend to be higher on average than the United States.

Which of the Following About Unemployment Is True