The natural rate of unemployment will most likely increase if

Question

Quizplus · Accepted Answer

Unemployment benefits serve as a disincentive for individuals to actively search for work, which can lead to a higher natural rate of unemployment. Therefore, increasing unemployment benefits is likely to increase the natural rate of unemployment. Decreasing the minimum wage rate, decreasing monetary growth, and increasing income taxes may have other effects on unemployment, but are not necessarily likely to increase the natural rate of unemployment.

The Natural Rate of Unemployment Will Most Likely Increase If