Which of the following would tend to increase the natural rate of unemployment?

A. More young workers

B. A higher rate of inflation

C. An increase in the education level of the labor force

D. Lower unemployment benefit payments

Which of the following would tend to increase the natural rate of unemployment?business loan

B

Which of the following would tend to increase the natural rate of unemployment? loan

D|||A.|||I think its B. It%26#039;s definitely not C or D, but I%26#039;m not 100% sure between A and B.|||B|||It%26#039;s A

More workers doesn%26#039;t mean more jobs at the same time|||(A) is only valid if the number of new jobs created slows and the young workforce begins to exceed the retirement of the older workforce. Since that data is lacking, (A) cannot be a valid choice.

(B) Is the likely answer because Higher Inflation causes prices to rise. If incomes do not rise accordingly, then the goods and services people purchase will decline as they become less affordable. Thus causing a slump in the economy and more people being laidoff and/or not hired.

(C) An increase in education means nothing in terms of employment or lack thereof.

(D) Lower Unemployment benefits is an after thought to employment. Or I should say Unemployment isn%26#039;t determined by the benefits one receives.

So overall (B) is the correct choice.|||spread of education which leads to increase in the workforce.