Most economists believe that the source of European high unemployment in the past two decades is

Question

Quizplus · Accepted Answer

Labor market institutions, such as strong labor protections and minimum wage laws, can create inflexibilities that make it difficult for employers to adjust to changes in the economy. This, in turn, can lead to higher levels of unemployment. Tight monetary policy and fiscal policy can also have negative effects on employment, but labor market institutions are considered to be the primary source of Europe's high unemployment in recent decades. The financial crisis may have exacerbated the problem, but it is not seen as the root cause.

Most Economists Believe That the Source of European High Unemployment