If the Labor Market Becomes Less Efficient So That the Unemployed

question 34

Multiple Choice

If the labor market becomes less efficient so that the unemployed are more slowly 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:

Prohibition

The legal act of prohibiting the manufacture, transportation, and sale of alcohol, most notably implemented in the United States from 1920 to 1933.

Republicans

A political party in the United States that traditionally champions conservative ideologies, including limited government, lower taxes, and a free-market economy.

Northern Democrats

A faction of the Democratic Party in the United States before the Civil War, mainly based in the North, known for their diverse views on slavery.

Placidity

A state of calmness and tranquility, often describing a peaceful and undisturbed environment or demeanor.