For the past decade, the unemployment rate in Western Europe has been higher than the unemployment rate in the United States
Based on this fact, is the natural unemployment rate larger in Western Europe or in the United States? Why might the natural rates differ between the two areas?
The natural unemployment rate is probably higher in Western Europe than in the United States. A major reason why this difference exists is that unemployment benefit payments in Western Europe are higher than in the United States, so people stay frictionally unemployed longer in Western Europe.
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Suppose the lack of agricultural land is a key reason for the slow economic growth of Lithasia. This argument claims that:
A) geography is the fundamental cause of slow economic growth in Lithasia. B) stock of physical capital is a fundamental cause of slow economic growth in Lithasia. C) stock of human capital is a proximate cause for slow economic growth in Lithasia. D) geography is a proximate cause of slow economic growth in Lithasia.
What is a marginal benefit?
What will be an ideal response?