As the average age of the labor force increased from the end of the 1970s to the end of the 1990s, the natural rate of unemployment:
A) increased.
B) decreased.
C) was unaffected.
D) was unpredictable.

Question

Quizplus · Accepted Answer

The natural rate of unemployment tends to decrease as the average age of the labor force increases because older workers generally have more experience and are less likely to quit their jobs, leading to lower levels of frictional unemployment.

As the Average Age of the Labor Force Increased from the End