ANSWERS TO END-OF-CHAPTER PROBLEMS
1. a. b. c. d. True. True. False. False/uncertain. The rate of growth was higher during the decade beginning in 1996 than during the previous two decades, but it is probably unrealistic to expect productivity to continue to grow at such a fast pace. e. False. There are problems with the statistics, but the consensus is that growth in China has been high. f. False. The European “unemployment miracle” refers to the relatively low European unemployment rate in the 1960s and the early 1970s. g. True. h. True.
2. a. More flexible labor market institutions may lead to lower unemployment, but there are questions about how precis…(생략)
ely to restructure these institutions. The United Kingdom has restructured its labor market institutions to resemble more closely U.S. institutions and now has a lower unemployment rate than before the restructuring. On the other hand, Denmark and the Netherlands have relatively low unemployment ra