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Figure 1(a) shows harmonized unemployment rates among OECD countries between years 2005 and 2018, while Figure 1(b) depicts unemployment rates of specific European countries during

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Figure 1(a) shows harmonized unemployment rates among OECD countries between years 2005 and 2018, while Figure 1(b) depicts unemployment rates of specific European countries during the same period. (Total 25') OECD Harmonised Unemployment Rates, s.a. All -OECD Total - United States -Euro area Japan Frland Portugal Spain Greece Slovak Republic Turkey 11 10 5 10 (a) (b) Figure 1 (1) According to Figure 1(a), unemployment rates are much higher in Euro area than in other OECD countries. In your opinion, what are the possible reasons? (6') (2) Describe and explain the overall trend of unemployment rate during December 2007 and December 2012. Use graphs if necessary. (9') (3) Greece and Spain recorded the highest government debt to GDP ratio, while performed much worse than other European countries in lowering unemployment rates (as is seen in Figure 1(b)). What are the possible policies of Greece's and Spain's government to tackle with the high unemployment rate? How would their high government debt to GDP ratio impede government policies to lower the unemployment rate? Explain it in your words. (10) (25.09) Figure 1(a) shows harmonized unemployment rates among OECD countries between years 2005 and 2018, while Figure 1(b) depicts unemployment rates of specific European countries during the same period. (Total 25') OECD Harmonised Unemployment Rates, s.a. All -OECD Total - United States -Euro area Japan Frland Portugal Spain Greece Slovak Republic Turkey 11 10 5 10 (a) (b) Figure 1 (1) According to Figure 1(a), unemployment rates are much higher in Euro area than in other OECD countries. In your opinion, what are the possible reasons? (6') (2) Describe and explain the overall trend of unemployment rate during December 2007 and December 2012. Use graphs if necessary. (9') (3) Greece and Spain recorded the highest government debt to GDP ratio, while performed much worse than other European countries in lowering unemployment rates (as is seen in Figure 1(b)). What are the possible policies of Greece's and Spain's government to tackle with the high unemployment rate? How would their high government debt to GDP ratio impede government policies to lower the unemployment rate? Explain it in your words. (10) (25.09)

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