A nonpolicy reason for the reduction in the natural rate of unemployment is the
A)expansionary nature of monetary policy.
B)aging of the U.S.labor force.
C)decline in interest rates.
D)growing federal budget surplus.

Question

Quizplus · Accepted Answer

The aging of the U.S. labor force is a nonpolicy reason for the reduction in the natural rate of unemployment. As the population ages, more people retire and exit the labor force, meaning there are fewer workers available to fill job vacancies. This can lead to a decrease in the natural rate of unemployment as there are fewer people actively searching for work.

A Nonpolicy Reason for the Reduction in the Natural Rate