Which situation is likely to increase the natural rate of unemployment?
A) the entrance of many new people into the labor force
B) a decrease in unemployment compensation benefits
C) a decrease in job search time due to information advances like the Internet
D) the elimination of the minimum wage

Question

Quizplus · Accepted Answer

The entrance of many new people into the labor force is likely to increase the natural rate of unemployment as it will create more competition for jobs and employers may not be able to hire everyone who is looking for work.

Which Situation Is Likely to Increase the Natural Rate of Unemployment