The changing age structure of the U.S. population and more efficient labor markets are both possible explanations for:
A)the decline in the natural rate of unemployment.
B)the increase in the cyclical rate of unemployment.
C)the 2001 recession.
D)the stagnation of real wages.

Question

Quizplus · Accepted Answer

The natural rate of unemployment in the United States fell steadily from 6.3 percent in 1979 to about 5 percent in 1999. It was estimated to have risen some after the financial crisis from 2009 to 2013, but has since declined again to 4.8 percent in 2016. The average age of U.S. workers is rising, reflecting the aging of the baby boom generation. Since young workers are more prone to unemployment than older workers, the aging of the labor force may help explain the decline. Labor markets may have become more efficient with matching workers with jobs.

The Changing Age Structure of the U