Changes in which of the following do NOT affect the natural unemployment rate?
A) The birth rate or other demographic data
B) The minimum wage
C) The quantity of money
D) Structural change
E) Unemployment benefits

Question

Quizplus · Accepted Answer

The natural unemployment rate is primarily affected by factors that influence the structure and dynamics of the job market, such as technology, demographics, and policies, rather than by short-term fluctuations in the economy like the quantity of money. Changes in the quantity of money typically influence inflation and can have short-term impacts on employment levels, but they do not directly affect the natural rate of unemployment, which is considered to be the rate of unemployment that the economy naturally gravitates towards in the long run.

Changes in Which of the Following Do NOT Affect the Natural