The natural rate of unemployment would decline if
A) unemployment compensation benefits were increased for laid-off workers
B) corporations downsize their production and administrative operations
C) the government decreases its purchases of aircraft and tanks
D) the number of young people in the labor force declines

Question

Quizplus · Accepted Answer

The natural rate of unemployment would decline if the number of young people in the labor force declines because younger workers typically have higher rates of job turnover and unemployment due to less experience and job stability. This would lead to a lower overall natural rate of unemployment.

The Natural Rate of Unemployment Would Decline If