Economists who are skeptical of hysteresis in Europe during the 1980s and 1990s cite all of the following as reasons for persistently high unemployment in Europe EXCEPT

When the theory of mercantilism was superseded by the theory of "classical liberalism" of Adam Smith around the time of the American Revolution,

(a) the colonies had shifted toward laissez faire, governmental noninvolvement in the private economy, but the new nation rejected the philosophy of laissez faire. (b) governmental involvement in the private economy persisted in both the colonies and the new nation; the U.S. Constitution adopted the common law from England which sanctioned certain types of governmental involvement. (c) governmental involvement had already been largely abandoned in the colonies and laissez faire was officially adopted by the new nation. (d) government involvement was strong down to the time of the Revolution; it was then abandoned and laissez faire was enshrined in the Constitution and became part of the law of the land.

Which of the following occurs when a consumer equilibrium has been achieved? a. The marginal utility of the last unit purchased is identical for all goods

b. The price of the last unit purchased is identical for all goods. c. An equal amount of income is spent on all goods purchased. d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.