8. Based on the reading, which of the following is true of labor markets in Europe compared with the U.S.? a) Europe has more powerful unions than in the U.S., leading to a lower rate of job finding and higher real wages. b) Europe has higher birth rates than the U.S., leading to a higher rate of job finding in Europe. c) Europe has a lower demand for unskilled labor, causing a higher rate of job separation in Europe. d) Europe has larger benefits associated with unemployment insurance, leading to a higher rate of job finding in Europe. 9. Consider the money demand function that takes the form (M/P) = KY, where M is the quantity of money, P is the price level, and Y is real output. If the money supply is growing at 7%, real output is growing at a 2.5%, and k is constant, and the nominal interest rate is equal to 10%. Based on this information, the inflation rate is and the real interest rate is a) 4.5%.....5.5% b) 4.5%..... 12.5% C) 9.5%.....0.5% d ) 9.5%.....5.5%