When is the natural rate of unemployment most likely to fall?

A.
when there is a decline in the education levels of workers
B.
when there is an increase in income tax rates
C.
when there is an increase in labour mobility
D.
when there is a rise in the rate of state unemployment benefits
Economics
IGCSE&ALevel
CAIE
Exam No:9708_w24_qp_32 Year:2024 Question No:17

Answer:

C

Knowledge points:

9.3.4.1 definition
9.3.4.2 determinants
9.3.4.3 policy implications
9.3.6.1 forms of labour mobility: geographical and occupational
9.3.6.2 factors affecting labour mobility
9.3.6.3 policies to reduce unemployment and their effectiveness

Solution:

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