Data indicate that the natural unemployment rate in Canada is typically 3 percentage points higher than the U.S.natural unemployment rate.This difference is most likely the result of differences in

Question

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The natural unemployment rate is the rate of unemployment that exists when the economy is at full employment, meaning there is no cyclical unemployment. This rate is largely influenced by institutional and structural factors, including labor market policies and the generosity of unemployment benefits. Since Canada and the United States have different unemployment benefit systems, it is likely that the difference in their natural unemployment rates can be attributed to this factor. Therefore, option D, "unemployment benefits," is the best choice.

Data Indicate That the Natural Unemployment Rate in Canada Is