The decline in the natural rate of unemployment between the 1970s and the 2000s might be the result of:
A. increasing wage inequality and skill-biased technological change.
B. greater quantities of human capital and increased average labor productivity.
C. the changing age structure of the population and more efficient labor markets.
D. advances in computer technology and globalization.
Answer: C
You might also like to view...
Which of the following correctly describes a wage-price spiral?
a. An increase in nominal wages causes inflation, and inflation causes workers to demand even higher wages in order to keep their real income constant. This cycle can repeat itself. b. An increase in real wages due to growth in worker productivity causes inflation, which in turn increases worker productivity. c. A decrease in prices causes workers to demand higher wages, which in turn puts additional downward pressure on prices. d. None of the above.
In what sense is it a cost that people must spend time and resources coping with inflation?
a. Because the loss of time and resources frustrates people unnecessarily b. Because the time and resources could have been used to produce something else instead c. Because the time and resources could have been wasted elsewhere d. Because the time and resources are a sunk cost e. Because the time and resources are insufficient to cope with the problem