The natural rate of unemployment can be reduced by
A)expansionary monetary policies, but this would create more inflation
B)expansionary fiscal policies, such as an income tax decrease
C)restrictive fiscal policies designed to balance the federal budget
D)training and skills programs that focus on teenagers and the long-term unemployed
E)none of the above

Question

Quizplus · Accepted Answer

Training and skills programs can help reduce the natural rate of unemployment by improving the employability of teenagers and the long-term unemployed. This approach is not likely to create inflation, unlike expansionary monetary or fiscal policies, and it does not require restrictive fiscal policy measures.

The Natural Rate of Unemployment Can Be Reduced by