Author Question: Discuss the types of policies that could be implemented to reduce European unemployment. What ... (Read 68 times)

Engineer · **on:** Jun 30, 2018

Discuss the types of policies that could be implemented to reduce European unemployment.

What will be an ideal response?

Question 2

Most economists believe that the source of European high unemployment in the past two decades is

A) labor market institutions.
B) tight monetary policy.
C) tight fiscal policy.
D) financial crisis.

heyhey123 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

There are basically two sets of policies. First, policy makers could reduce labor market rigidities that some economists believe have contributed to the high unemployment. Some examples of labor market rigidities are high unemployment benefits, high minimum wages, and excessive job protection regulations. The second set of policies includes bad labor relations and inadequate macroeconomic policies.

Answer to Question 2

A