One factor that raises the natural rate of unemployment is:
A) a population boom that increases the number of young workers joining the labor force.
B) the loss of labor union membership across industries.
C) the loss of retirement funds so that more people in the baby-boom generation continue to work past the typical retirement age.
D) the use of new technology in the workplace that increases labor productivity.

Question

Quizplus · Accepted Answer

A population boom that increases the number of young workers joining the labor force raises the natural rate of unemployment. This is because it takes time for these new workers to find jobs and gain the necessary skills and experience to be productive in the workforce. As a result, the natural rate of unemployment increases as more and more workers are in the process of searching for employment.

One Factor That Raises the Natural Rate of Unemployment Is