1. Explain how the insideroutsider model accounts for the persistent high unemployment in European countries during the post-1980 period. 2. During the administration of George W. Bush, reductions in...

1. Explain how the insider–outsider model accounts for the persistent high unemployment in European countries during the post-1980 period.

2. During the administration of George W. Bush, reductions in the tax rates on labor income, dividends, and capital gains were the centerpiece of fiscal policy. Analyze the effects of these tax cuts within the real business cycle theory