Which of the Following Would Reduce the Natural Rate of Unemployment

question 73

Multiple Choice

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

• A)both an increase in the rate of money growth and increased unemployment compensation
• B)an increase in the rate of money growth but not increased unemployment compensation
• C)an increase in unemployment compensation but not an increase in the rate of money growth.
• D)neither an increase in unemployment compensation nor an increase in the rate of money growth.

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Definitions:

Imported

Goods or services brought into one country from another for sale or use.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and what they actually receive due to higher market prices.

Tariff

A tax imposed by a government on imported or exported goods, often used to protect domestic industries or to generate revenue.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and the actual price they pay.