According to the labor market model studied in class, the higher natural unemployment rates observed in some European countries can be in part, attributed to: OA High minimum wages OB. More monopolistic market structure of private sector firms OC. A generous system of unemployment insurance OD. Bargaining rules that strengthen the bargaining power of unions OE All of the above.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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According to the labor market model studied in class, the higher natural unemployment rates observed in some European countries can be in part, attributed to:
OA High minimum wages
OB. More monopolistic market structure of private sector firms
OC. Agenerous system of unemplayment insurance
OD. Bargaining rules that strengthen the bargaining power of unions
OE All of the above.
Consider the extended IS-LM model where the nominal policy rate is 5% and the expected inflation rate is 4%. This implies that the real policy rate is
OA 2%
OB. 3%
OC. 0%
O D. 1%
If the expected inflation rate decreases, to maintain the original real policy rate the central bank would have to:
OA decrease the nominal interest rate
OB. decrease the money supply
OC. increase the nominal interest rate
OD. leave the nominal interest rate unchanged
Transcribed Image Text:According to the labor market model studied in class, the higher natural unemployment rates observed in some European countries can be in part, attributed to: OA High minimum wages OB. More monopolistic market structure of private sector firms OC. Agenerous system of unemplayment insurance OD. Bargaining rules that strengthen the bargaining power of unions OE All of the above. Consider the extended IS-LM model where the nominal policy rate is 5% and the expected inflation rate is 4%. This implies that the real policy rate is OA 2% OB. 3% OC. 0% O D. 1% If the expected inflation rate decreases, to maintain the original real policy rate the central bank would have to: OA decrease the nominal interest rate OB. decrease the money supply OC. increase the nominal interest rate OD. leave the nominal interest rate unchanged
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