Which of the Following Would Decrease the Natural Rate of Unemployment

question 251

Multiple Choice

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

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

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Definitions:

Consumption Bundle

A combination of goods and services that a consumer chooses to consume given their budget constraints.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or utility.

Consumption

The process by which goods and services are used up by consumers.

Indifference Curves

A graphical representation showing combinations of goods or services among which a consumer is indifferent, depicting equal levels of utility.