Newly released data shows that the U.S. unemployment rate was 6.2% in Feb 2021, whereas the Euro area unemployment rate was 8.3%. In fact, the U.S. has almost always (with a few exceptions) had a lower unemployment rate compared to the Euro area. Which is most likely not a reason to explain the above scenario? O The wage in Euro area is too high. Euro firms have shifted from hiring local workers to hiring in countries that have cheaper labor O Higher relative wages for skilled laborers in the US has decreased the unemployment rate O Euro area has generous unemployment insurance to guarantee worker benefits, which increases the unemployment rate O US has relatively stronger unions compared to the Euro area, which decreases the unemployment rate

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Newly released data shows that the U.S. unemployment rate was 6.2 % in Feb 2021, whereas the
Euro area unemployment rate was 8.3%. In fact, the U.S. has almost always (with a few exceptions)
had a lower unemployment rate compared to the Euro area. Which is most likely not a reason to
explain the above scenario?
O The wage in Euro area is too high. Euro firms have shifted from hiring local workers to hiring in countries
that have cheaper labor
O Higher relative wages for skilled laborers in the US has decreased the unemployment rate
Euro area has generous unemployment insurance to guarantee worker benefits, which increases the
unemployment rate
O U.S. has relatively stronger unions compared to the Euro area, which decreases the unemployment rate
Transcribed Image Text:Newly released data shows that the U.S. unemployment rate was 6.2 % in Feb 2021, whereas the Euro area unemployment rate was 8.3%. In fact, the U.S. has almost always (with a few exceptions) had a lower unemployment rate compared to the Euro area. Which is most likely not a reason to explain the above scenario? O The wage in Euro area is too high. Euro firms have shifted from hiring local workers to hiring in countries that have cheaper labor O Higher relative wages for skilled laborers in the US has decreased the unemployment rate Euro area has generous unemployment insurance to guarantee worker benefits, which increases the unemployment rate O U.S. has relatively stronger unions compared to the Euro area, which decreases the unemployment rate
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