If the Labor Market Becomes More Efficient So That the Unemployed

question 140

Multiple Choice

If the labor market becomes more efficient so that the unemployed are more quickly matched with jobs, then

• A) the natural rate of unemployment will increase.
• B) the natural rate of unemployment will decrease.
• C) the natural rate of unemployment will not change.
• D) the natural rate of unemployment could either increase or decrease.

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Definitions:

Cohorts

Groups of people who share a common characteristic or experience within a defined period.

Decades

Periods of ten years.

Continuous

Uninterrupted in time, sequence, substance, or extent; without cessation or gaps.

Discontinuous

Characterized by interruptions or gaps, not having a steady or unbroken progression.