Which of the following would be likely to lead to a decrease in the natural rate of unemployment?
A) an increase in the number of teenagers in the workforce
B) a decrease in the length of time during which people can receive unemployment benefits
C) a prolonged recession
D) all of the above

Question

Quizplus · Accepted Answer

A decrease in the length of time people can receive unemployment benefits would provide an incentive for people to find work more quickly, which would lower the natural rate of unemployment. Choices A and C would not likely lead to a decrease in the natural rate of unemployment.

Which of the Following Would Be Likely to Lead to a Decrease