Question 23 Which of the following about unemployment is true? (1) High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment. (2) The unemployment rates of the major European economies have been lower than the United States during the last decade. (3) The unemployment rates of Spain and Italy were among the lowest in the world during the past two decades. (4) The natural rate of unemployment is unaffected by labor market regulations and other dimensions of public policy.

Let's evaluate each of the statements to determine which are true regarding unemployment: 1. **High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment.** - **True.** Prolonged high unemployment often suggests structural issues in the economy, such as mismatches between workers' skills and job requirements, geographic mismatches, or other long-term factors that affect the natural rate of unemployment. 2. **The unemployment rates of the major European economies have been lower than the United States during the last decade.** - **False.** In reality, many major European economies have experienced unemployment rates that are equal to or higher than those in the United States over the past decade. For example, countries like Spain and Italy have historically had higher unemployment rates compared to the U.S. 3. **The unemployment rates of Spain and Italy were among the lowest in the world during the past two decades.** - **False.** Spain and Italy have often struggled with relatively high unemployment rates, especially among the youth, making them some of the higher unemployment nations in Europe rather than the lowest. 4. **The natural rate of unemployment is unaffected by labor market regulations and other dimensions of public policy.** - **False.** The natural rate of unemployment is influenced by various factors, including labor market regulations, taxation, education policies, and other public policies that can affect employment levels and job matching processes. **Conclusion:** Only **Statement (1)** is true.