Which of the following policies will not reduce the natural unemployment rate?
A) policies to increase labour market flexibility
B) job training and worker relocation
C) increasing unemployment benefits
D) expansionary policies to reduce actual unemployment rate

Question

Quizplus · Accepted Answer

Increasing unemployment benefits will not reduce the natural unemployment rate as it may potentially discourage workers from seeking employment and may lead to a decrease in their job search effort. This can further lead to a rise in the natural unemployment rate. Policies A, B, and D can contribute to reducing the natural rate of unemployment by increasing labour market flexibility, improving worker skills, and increasing demand for labour through economic growth.

Which of the Following Policies Will Not Reduce the Natural