Author Question: Why do the European countries like France, Germany, Italy and Spain have higher unemployment rates ... (Read 201 times)

deesands · **on:** Jun 30, 2018

Why do the European countries like France, Germany, Italy and Spain have higher unemployment rates than other industrialized nations?
a. Low interest rate and low capital formation
b. Minimum wages are lower in these European countries compared to the other industrialized nations
c. Trade unions are not so prominent in these European countries
d. Stringent policies adopted by the governments of these nations against the termination of workers by firms
e. Nominal wages are more flexible in these nations compared to the other industrialized nations

Question 2

A good economic theory is always more useful when it includes detailed facts, even if the facts are not relevant to the questions being investigated.
a. True
b. False
Indicate whether the statement is true or false