
In recent years, unemployment rates in several European countries have been higher than unemployment rates in the United States.Many economists believe that European unemployment rates have been higher because
A) of the different methods used to measure unemployment. If similar methods were used, unemployment rates in Europe and the United States would be about the same.
B) European firms hire many seasonal workers from other countries, and this tends to inflate unemployment rates in their countries.
C) unemployment benefits are more generous in Europe than in the United States.
D) the size of the military is much larger in the United States and all military personnel are classified as employed.
Correct Answer:
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A)the income effect of
A)an inferior good.
B)a complementary good to
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