Which of the following is most likely to increase the natural rate of unemployment?
A) An increase in the age of the working population
B) A shift from service to manufacturing jobs
C) An increase in the minimum wage rate
D) A reduction in social security benefits
E) A reduction in direct taxes

Question

Quizplus · Accepted Answer

An increase in the minimum wage rate can lead to a higher natural rate of unemployment because it may cause employers to hire fewer workers due to the increased cost of labor.

Which of the Following Is Most Likely to Increase the Natural