The gap in GDP between the United States and Europe can be explained by the fact that
A) income taxes are higher in the United States.
B) prices are higher in the United States.
C) equilibrium employment is higher in Europe.
D) the Okun Gap is larger in the United States.
E) U.S. labor is more productive than European labor.
E
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The opportunity cost of a decision is the value of all of the available alternatives that were not chosen
a. True b. False Indicate whether the statement is true or false
When a firm or economy is operating efficiently, it is operating
A. outside its production possibilities frontier. B. inside its production possibilities frontier. C. on its production possibilities frontier. D. at the intersection of the production possibilities frontier and the vertical axis. E. at the intersection of the production possibilities frontier and the horizontal axis.