Which of the Following Lowers Frictional Unemployment

question 292

Multiple Choice

Which of the following lowers frictional unemployment?

• A)more young people in the economy
• B)decreasing unemployment benefits
• C)increasing the pace of technological change
• D)increasing the minimum wage
• E)None of the above answers are correct because all of the answers raise frictional unemployment.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, which reflects the cost of borrowing or the return on savings.

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, aiming to measure satisfaction or happiness.

Consumption

Households' utilization of goods and services.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.