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A Newspaper Headline Reads "A New Wave of Workers Enters

Question 135

Multiple Choice

A newspaper headline reads "A New Wave of Workers Enters the Job Market!" This wave of young, new entrants to the labor market is likely to lead to


A) an increase in the natural unemployment rate.
B) a decrease in the unemployment rate.
C) no effect on the unemployment rate.
D) a decrease in the country's potential GDP.
E) a decrease in the natural unemployment rate but an increase in the actual unemployment rate.

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