If the federal government implements programs so that the unemployed are more quickly matched with jobs,then
A)the natural rate of unemployment will increase.
B)the natural rate of unemployment will decrease.
C)the natural rate of unemployment will not change.
D)the natural rate of unemployment could either increase or decrease.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the rate of unemployment that occurs when there is no cyclical unemployment. Cyclical unemployment occurs due to fluctuations in the business cycle, which are beyond the control of the government. By implementing programs to quickly match the unemployed with jobs, the government can reduce frictional unemployment, which occurs due to a lack of information about job openings and job seekers. This can help to reduce the natural rate of unemployment.

If the Federal Government Implements Programs So That the Unemployed