Which of the following is one explanation for the persistently high unemployment rates in Europe during the 1990s?
A) Unemployment rates have always been high in Europe.
B) The labour supply in Europe increased faster than labour demand.
C) The labour supply in Europe increased while labour demand decreased.
D) European labour demand decreased because of legislation that made hiring a worker an almost irreversible decision.

Question

Which of the following is one explanation for the persistently high unemployment rates in Europe during the 1990s?  
A) Unemployment rates have always been high in Europe. 
B) The labour supply in Europe increased faster than labour demand. 
C) The labour supply in Europe increased while labour demand decreased. 
D) European labour demand decreased because of legislation that made hiring a worker an almost irreversible decision.

Quizplus · Accepted Answer

European labor demand decreased due to strict employment protection legislation, making it difficult for employers to dismiss workers, thus discouraging hiring.

Which of the Following Is One Explanation for the Persistently