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4 November, 13:29

Which of the following is not a reason why the natural rate of unemployment can change over time? Select the correct answer below:

a. age-related demographic changes in the labor market

b. the natural business cycle of recessions and economic booms

c. the growth of the temporary worker industry

d. technological changes in the ways workers look for jobs

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  1. 4 November, 13:31
    0
    The correct answer is D. Technological changes in the ways workers look for jobs is not a reason why the natural rate of unemployment can change over time.

    Explanation:

    The fact that workers looking for work change their search methods is not a factor that influences the natural unemployment rate of a given country. This is so because, in any case, this would influence the supply of workers, but not the supply of jobs, which is what ultimately determines the unemployment rate.

    In other words, the lower the number of workers looking for work, the unemployment rate does not increase. Unemployment rates increase when what decreases is the number of available jobs.
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