One reason for the rise in the natural rate of unemployment is
A)changes in the demographic composition of the work force.
B)the rise in inflation.
C)increased competition from foreign workers.
D)the depreciation of the dollar relative to foreign currencies.

Question

Quizplus · Accepted Answer

Changes in the demographic composition of the work force, such as an aging population or an increase in the number of discouraged workers, can lead to a higher natural rate of unemployment. As people age, they may become less able or willing to work, which can increase unemployment. Additionally, discouraged workers who have given up looking for work are also included in the natural rate of unemployment, which can increase if more people become discouraged.

One Reason for the Rise in the Natural Rate of Unemployment