Author Question: For several years, the U.S. unemployment rate has been below the European unemployment rate. Offer a ... (Read 23 times)

abern · **on:** Jun 30, 2018

For several years, the U.S. unemployment rate has been below the European unemployment rate. Offer a Keynesian explanation for this.

What will be an ideal response?

Question 2

Which statement is TRUE about a comparison of economic freedom with political freedom?

A) Economic freedom is more important than political freedom when considering positive economic growth.
B) Economic freedom leads to positive economic growth while political freedom leads to negative economic growth.
C) Political freedom is more important than economic freedom when considering positive economic growth.
D) Economic freedom cannot exist without political freedom.

blfontai · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The aggregate supply curve in Europe is closer to horizontal than is the case in the United States. The labor market is less flexible in Europe due to higher unemployment benefits that reduce the incentive to work, and due to higher costs to firms for hiring workers.

Answer to Question 2

A