Preference

Question: Which policy is most likely to result in a decrease in the natural rate of unemployment?

  1. a.
    an increase in trade union membership
  2. b.
    a decrease in the level of government payments to the unemployed
  3. c.
    a reduction in interest rates
  4. d.
    an increase in government expenditure on goods and service
  5. e.
    None of these
Answer: b
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