If the Labor Market Becomes More Efficient So That the Unemployed

question 140

Multiple Choice

If the labor market becomes more efficient so that the unemployed are more quickly matched with jobs, then

• A) the natural rate of unemployment will increase.
• B) the natural rate of unemployment will decrease.
• C) the natural rate of unemployment will not change.
• D) the natural rate of unemployment could either increase or decrease.

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Definitions:

Total Deductions

The sum of all the amounts subtracted from gross income to reduce taxable income, including tax, social security contributions, and other withholdings.

Tax Withheld

The portion of an employee's wages that is not included in their paycheck because it is sent directly to the government as partial payment of their annual income tax.

W-2

A form used in the United States to report wages paid to employees and the taxes withheld from them to the Internal Revenue Service (IRS).

1099 Form

An IRS tax form used to report various types of income other than wages, salaries, and tips.