Which of the following will most likely cause a change in the natural rate of unemployment?

Question

Quizplus · Accepted Answer

Changes in expected inflation can affect the natural rate of unemployment as workers may adjust their wage demands based on their expectations of future inflation. If workers have high expectations of inflation, they may demand higher wages to compensate, which could increase the natural rate of unemployment. Changes in monetary and fiscal policy may affect short-run unemployment rates, but are less likely to cause a long-term shift in the natural rate of unemployment.

Which of the Following Will Most Likely Cause a Change