Which of the following is most likely to increase the natural rate of unemployment?
A)Aging of the working population
B)A shift from service to manufacturing jobs
C)An increase in the minimum wage rate
D)A reduction in social security benefits
E)A reduction in direct taxes

Question

Quizplus · Accepted Answer

An increase in the minimum wage rate can lead to higher unemployment as employers may hire fewer workers due to increased labor costs, thus raising the natural rate of unemployment.

Which of the Following Is Most Likely to Increase the Natural