Which of the Following Will Most Likely Cause a Decrease

question 80

Multiple Choice

Which of the following will most likely cause a decrease the natural rate of unemployment?

• A) an increase in the minimum wage
• B) an increase in unemployment benefits
• C) an increase in experienced workers aged 25 and over as proportion of the labor force
• D) an increase in the labor force participation rate of teenagers

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Definitions:

Minimum Imposed Price

A price floor set by the government or other regulatory body, above the equilibrium price, to prevent prices from falling too low.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer satisfaction.

Producer Surplus

The difference between what producers are willing to accept for a good and the actual amount they receive.

Minimum Imposed Price

A price floor set by the government or an agency, below which the price of a product cannot legally fall.