Which of the following about unemployment is true?
A) The unemployment rates of the major European economies have been lower than that of the United States during the last decade.
B) Compared to the U.S., European labor markets are characterized by less extensive regulation and less generous unemployment benefits.
C) High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment.
D) The natural rate of unemployment decreases when youthful workers expand as a proportion of the workforce.

Question

Quizplus · Accepted Answer

High unemployment rates over lengthy time periods indicate structural factors that are impacting the natural rate of unemployment. This is because the natural rate of unemployment takes into account structural factors such as technological changes, demographics, and labor market regulations. If these structural factors are adversely affecting the labor market, then the natural rate of unemployment will be higher. Therefore, policies aimed at reducing the natural rate of unemployment must address these structural factors.

Which of the Following About Unemployment Is True