When the "baby boom" generation began entering the labor market during the 1960s and 1970s,youthful workers as a share of the labor force increased causing a(n)

Question

Quizplus · Accepted Answer

The increase in the number of youthful workers entering the labor market caused an increase in the supply of labor, which led to an increase in the natural rate of unemployment. This is because the natural rate of unemployment includes frictional and structural unemployment, which are always present in the economy, and the influx of new workers increased the number of individuals in these categories. Therefore, choice D, increase in the natural rate of unemployment, is the best answer. Choices A, B and C are incorrect as they suggest a reduction in unemployment, which is not the case in this scenario.

When the "Baby Boom" Generation Began Entering the Labor Market