Which of the following policies does NOT decrease the natural rate of unemployment?
A)tax credits or subsidies for training and relocating unemployed workers
B)lowering consumption taxes
C)lowering payroll taxes
D)using aggressive policy to keep the actual unemployment rate low

Question

Quizplus · Accepted Answer

Lowering consumption taxes does not directly address the structural or frictional factors that contribute to the natural rate of unemployment, unlike the other options which aim to improve worker skills, mobility, or reduce hiring costs.

Which of the Following Policies Does NOT Decrease the Natural