The reduction of structural unemployment in U.S.economy may require
A)an increase in the minimum wage.
B)a reduction in government spending.
C)a decrease in interest rates.
D)increased spending on worker retraining.

Question

Quizplus · Accepted Answer

Structural unemployment is often caused by a mismatch between the skills of the unemployed workers and the skills required for available job openings. An increase in the minimum wage (choice A) could potentially lead to a decrease in employment overall, including among non-structural unemployed workers. A reduction in government spending (choice B) could potentially lead to a decrease in demand and therefore employment opportunities. A decrease in interest rates (choice C) could potentially stimulate economic growth and job creation, but it would not necessarily address the skills mismatch that causes structural unemployment. Increased spending on worker retraining (choice D) would directly address the skills mismatch by providing workers with the skills needed for available job openings, thereby reducing structural unemployment.

The Reduction of Structural Unemployment in U