Which of the Following Would Increase the Natural Rate of Unemployment

question 28

Multiple Choice

Which of the following would increase the natural rate of unemployment?

• A)an increase in the number of younger,less skilled workers in the economy
• B)a reduction in the generosity of unemployment insurance programs
• C)restrictions on the ability of unions to negotiate wage changes with companies
• D)an increase in government-sponsored programs that train unemployed workers so they can find new jobs quickly

---

Definitions:

Efficient

A state of productivity in which resources are used in the most cost-effective way without waste, achieving the highest possible output from a given input.

Equitable

Characterized by fairness or impartiality; just and right in considering the rights and responsibilities of all parties involved.

Efficiency

The extent to which resources are used optimally to achieve the desired output, often maximizing productivity while minimizing waste.

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.