The sectoral shifts explanation for changes in the U.S. natural rate of unemployment over the past 50 years rests on the idea that oil-price volatility the rate of job .
A)increased; separation
B)decreased; separation
C)increased; findings
D)decreased; findings

Question

Quizplus · Accepted Answer

The sectoral shifts explanation attributes changes in the natural rate of unemployment to the reallocation of workers among sectors of the economy in response to oil-price volatility, which can cause shifts in demand for goods and services that, in turn, affects the demand for labor in different sectors. This reallocation of workers can lead to an increase in the rate of job separation, as workers move from declining sectors to growing sectors, and therefore an increase in the natural rate of unemployment.

The Sectoral Shifts Explanation for Changes in the U