Which of the following will not cause an increase in the natural rate of unemployment?

Question

Quizplus · Accepted Answer

An increase in the expected inflation rate does not directly affect the natural rate of unemployment, which is determined by factors such as the efficiency of the labor market (frictions), the labor force's skill set, and regulations or policies (e.g., minimum wage laws, unemployment benefits). The natural rate of unemployment is more about the structural and frictional aspects of the job market rather than the cyclical or short-term influences like inflation expectations.

Which of the Following Will Not Cause an Increase in the Natural