Decoding 'Natural' Rate of UnemploymentUnemployment is a normal feature of our economy and the Congressional Budget Office believes the "natural"unemployment rate increased from 5 percent in 2007 to 6 percent in 2012.Source:WallStreetJournal,September 7, 2012Provide some reasons why the natural unemployment rate might have increased.The natural unemployment rate might have increased because ofA.an increase in the minimum wage and an increase in the number of firms paying an efficiency wageB.an increase in cyclical unemployment during the 2008-2009 recessionC.fewer people receiving unemployment benefitsD.a decrease in frictional and structural unemployment

The amount of unemployment in an economy that occurs when there is no upward or negative impact on…

The natural unemployment rate might have increased because of A. an increase in the minimum wage and an increase in the number of firms paying an efficiency wage B. an increase in cyclical unemployment during the 2008-2009 recession C. fewer people receiving unemployment benefits D. a decrease in frictional and structural unemployment

The natural unemployment rate might have increased because of A. an increase in the minimum wage and an increase in the number of firms paying an efficiency wage B. an increase in cyclical unemployment during the 2008-2009 recession C. fewer people receiving unemployment benefits D. a decrease in frictional and structural unemployment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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