Practice mode Labour Market

Which change is likely to reduce the natural rate of unemployment?

Correct answer D. More training is available for the unemployed

Explanation

Training gives jobless people the skills employers need, cutting structural unemployment. Higher benefits, higher income tax and less mobility all weaken job matching and would raise the natural rate.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.