Which of the following has led to an increase in the NAIRU in Canada?
A) increasing rate of productivity improvements among Canadian workers
B) changes in employment insurance legislation
C) decrease in foreign trade and regulation of certain industries
D) decreasing labour force participation rates

Question

Quizplus · Accepted Answer

Changes in employment insurance legislation can affect the NAIRU by altering the incentives for workers to accept jobs, potentially increasing the natural rate of unemployment if benefits are more generous or accessible.

Which of the Following Has Led to an Increase in the NAIRU