Any policy change that reduced the natural rate of unemployment

Question

Quizplus · Accepted Answer

All of the statement options A, B, and C are correct. 
Reducing the natural rate of unemployment is a policy change that improves the functioning of the labor market. This improvement leads to a shift of the long-run Phillips curve to the left, indicating that lower unemployment rates can be achieved without generating higher inflation expectations. It also causes a shift of the long-run aggregate-supply curve to the right, which implies an increase in potential output levels in the long run.

Any Policy Change That Reduced the Natural Rate of Unemployment