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Question: From 1992 to 1997, the unemployment rate in the US declined from 7.5% to 4.9%, while at the same time it rose from 8% to over 12% in continental western Europe.
(A) What factors caused the unemployment rates to diverge in these two regions?
(B) In the UK, the unemployment rate rose sharply through 1993, peaking at 10.5%, but it then declined to 6.3%. What caused unemployment to decline in the UK at the same time it continued to rise across the Channel?
(C) In 1998, the unemployment rate in France and Germany declined about 1%. What factors caused this turnaround?
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