The natural rate of unemployment is higher in many European countries than in the United States largely because
A) European countries tend to offer more generous unemployment benefits than in the United States.
B) European countries tend to place fewer conditions on employers regarding working conditions and firing workers than in the United States.
C) the labor force is smaller in European countries than in the United States.
D) more European workers are paid an annual salary rather than an hourly wage compared to workers in the United States.
E) many European countries have recently targeted policies to fight hyperinflation rather than worrying about unemployment.
Correct Answer:
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