Policies to lower the natural rate of unemployment include
A)proposals to raise the minimum wage rate.
B)mandated prison sentences for drug dealers.
C)retraining programs and employment services.
D)changes in the tax laws.

Question

Quizplus · Accepted Answer

Retraining programs and employment services can help workers acquire new skills and find jobs in industries with higher demand. This can lead to lower unemployment rates in the long run. Raising the minimum wage (choice A) may also help some workers, but it can also lead to higher unemployment as some businesses may cut jobs to cope with higher labor costs. Mandated prison sentences for drug dealers (choice B) is unrelated to the natural rate of unemployment. Changes in tax laws (choice D) can have some impact on employment, but the effect may be limited and depends on the specific details of the tax policies.

Policies to Lower the Natural Rate of Unemployment Include