Final answer:
European unemployment from 1960 to 2010 was mainly attributed to government policies that led to higher natural rates of unemployment, such as stringent labor laws and generous welfare benefits.
Step-by-step explanation:
Many economists believe that the rise in European unemployment from 1960 to 2010 was primarily caused by government policies. This is due to the fact that the sorts of laws and regulations that contribute to a higher natural rate of unemployment are more common in Europe than in the United States. Such policies include labor laws that provide extensive protection to workers, which could discourage hiring due to the potential costs and difficulties associated with firing underperforming employees. Additionally, generous welfare benefits may lower the incentive for individuals to accept lower-paying jobs, resulting in higher levels of unemployment. While factors like technological advancements, structural factors in the labor market, and global economic trends may have also played a role, the prevalent impact was that of governmental regulation and economic policies.