Which of the following is a factor determining the natural rate of unemployment?
rev: 05_30_2018
Multiple Choice
real GDP
demographics
the business cycle
the labor force participation rate
Answer
Option 2
demographics
A change in population demographics changes the natural rate of unemployment. A natural rate of unemployment is the sum of frictional and structural unemployed. Frictional unemployed are unemployed because of changing jobs. A structurally unemployed is lost jobs because of changes in the industry. These all things depends on the demographics of the population.
Which of the following is a factor determining the natural rate of unemployment? rev: 05_30_2018 Multiple...