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Unformatted text preview: 5. Which of the following might explain the relatively high unemployment rate in Europe? a. relatively high unemployment benefits b. relatively high minimum wage c. misguided macroeconomic policies d. all of the above e. both a and b 6. Which of the following is a potential cost of the European Union (i.e., the adoption of the Euro)? a. an increase in unemployment b. an increase in inflation c. the inability of member countries to set their own interest rates d. greater frequency of recessions 7. Most economists believe that the fall in Japanese stock prices was caused by: a. monetary policy b. fiscal policy c. trade barriers d. the end of a speculative bubble Key 1. c 2. b 3. a 4. b 5. d 6. c 7. d...
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