All of the following would increase the natural rate of unemployment EXCEPT
A) union activity restricts the mobility of labor.
B) government licensing of teachers restricts employment.
C) a mismatch of skills and jobs.
D) an economic recession.

Question

Quizplus · Accepted Answer

Economic recession is typically associated with a decrease in employment opportunities and an increase in unemployment, which would not increase the natural rate of unemployment. The other options listed could all potentially increase the natural rate of unemployment.

All of the Following Would Increase the Natural Rate of Unemployment