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Question
Macroeconomics
Posted 3 months ago
D is more suitable
Which of the following would be most likely to cause a decrease in the natural rate of unemployment?

Choose 1 answer:
(A) People enter the job market at an earlier age
(B) An economic boom leads a temporary increase in output
(C) Public policies such as unemployment insurance are introduced
(D) More people opt for an early retirement
(E) A recession causes widespread layoffs
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Answer from Sia
Posted 3 months ago
A
Key Concept
Natural Rate of Unemployment
Explanation
The natural rate of unemployment is the level of unemployment consistent with a stable rate of inflation. If people enter the job market at an earlier age, the labor force increases, potentially reducing the natural rate of unemployment if these new workers find jobs quickly.

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