In Countries with Very Restrictive Labour Laws,many Firms Are Reluctant

question 45

Multiple Choice

In countries with very restrictive labour laws,many firms are reluctant to hire workers.This reluctance can

• A) reduce cyclical unemployment and the natural rate of unemployment.
• B) reduce structural unemployment and the natural rate of unemployment.
• C) reduce frictional unemployment and the natural rate of unemployment.
• D) increase the natural rate of unemployment.

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Definitions:

Social Security Taxes

Compulsory payments made by employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

FUTA Tax Rate

The percentage rate at which employers are taxed under the Federal Unemployment Tax Act, funding state workforce agencies.

SUTA Tax Rate

The state unemployment tax rate businesses must pay, varying by state and affecting employer contributions to state unemployment funds.

Unemployment Taxes

Taxes imposed on employers by the government, intended to fund unemployment benefits for workers who have lost their jobs.