Which of the following would increase the natural rate of unemployment?

Question

Quizplus · Accepted Answer

An increase in the number of younger, less skilled workers in the economy would increase the natural rate of unemployment as they may find it harder to secure employment due to their lack of experience or skills.

Answer: B
 A reduction in the generosity of unemployment insurance programs would increase the natural rate of unemployment as unemployed workers may be less incentivized to find work and may remain unemployed for longer periods.

Answer: C
 Restrictions on the ability of unions to negotiate wage changes with companies may increase the natural rate of unemployment as unions may not be able to secure higher wages for their members, potentially reducing their incentive to work.

Answer: D
 An increase in government-sponsored programs that train unemployed workers so they can find new jobs quickly may decrease the natural rate of unemployment as it helps unemployed workers acquire new skills that may increase their employability.

Which of the Following Would Increase the Natural Rate of Unemployment