One factor that reduces the natural rate of unemployment is:
A) a binding minimum wage.
B) the recent proliferation of temporary employment agencies.
C) a slowdown in productivity growth.
D) government policies such as those that produced Eurosclerosis.

Question

Quizplus · Accepted Answer

Temporary employment agencies make it easier for people to find jobs, thus reducing the time they spend unemployed. This can lower the natural rate of unemployment by improving the efficiency of the job matching process.

One Factor That Reduces the Natural Rate of Unemployment Is