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

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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Decoding 'Natural' Rate of Unemployment
Unemployment 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:
Wall
Street
Journal,
September 7, 2012
Provide some reasons why the natural unemployment rate might have increased.
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
Transcribed Image Text:Decoding 'Natural' Rate of Unemployment Unemployment 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: Wall Street Journal, September 7, 2012 Provide some reasons why the natural unemployment rate might have increased. 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
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