Which of the following policies will NOT reduce the natural unemployment rate?
A)policies to increase labour market flexibility
B)job training and worker relocation
C)increasing unemployment benefits
D)expansionary policies to reduce actual unemployment rate

Question

Quizplus · Accepted Answer

Increasing unemployment benefits will not reduce the natural unemployment rate because it does not encourage people to actively seek employment. Instead, it may lead to people relying on benefits and not actively looking for work, resulting in a higher natural unemployment rate.

Which of the Following Policies Will NOT Reduce the Natural