Which law is most likely to reduce the natural rate of unemployment?
A) a law that makes all provinces repeal right-to-work laws
B) a law that makes it harder to find out about job candidates' past job history
C) a law that abolishes the minimum wage
D) a law that make it more difficult to monitor the efforts of workers

Question

Quizplus · Accepted Answer

Abolishing the minimum wage will decrease the cost of hiring workers, making it more attractive for firms to hire more workers, and potentially reducing the natural rate of unemployment. The other choices are likely to have the opposite effect, by increasing the cost of labor or reducing the information available to employers.

Which Law Is Most Likely to Reduce the Natural Rate