The bulk of the decline in the natural rate of unemployment from 1980 to 2000 is because of
A)a decline in the inflation rate.
B)a decline in the share of young workers in the labor force.
C)increased competition from foreign workers.
D)the depreciation of the dollar relative to foreign currencies.

Question

Quizplus · Accepted Answer

The share of young workers in the labor force declined during this period, which led to a decline in the natural rate of unemployment. This is because young workers tend to have less experience and skills, and therefore have a higher natural rate of unemployment.

The Bulk of the Decline in the Natural Rate of Unemployment