There is no easy way for policymakers to reduce the economy's natural rate of unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is determined by structural factors such as demographics, technology, and institutional factors such as minimum wage laws and labor market regulations. These factors are not easily influenced by policy changes, making it difficult for policymakers to reduce the natural rate of unemployment.

There Is No Easy Way for Policymakers to Reduce the Economy's