Recall the Application about how to estimate the shifts in the natural rate of unemployment to answer the following question(s).
-Recall the Application. Under normal circumstances, the higher the unemployment rate, the ________ job vacancies there will be. Over time, this would tend to ________ the natural rate of unemployment.
A) more; increase
B) more; decrease
C) fewer; increase
D) fewer; decrease

Question

Quizplus · Accepted Answer

Under normal circumstances, the higher the unemployment rate, the fewer job vacancies there will be. This is because there will be more job seekers than available jobs. As a result, firms can afford to be choosier and have higher hiring standards, leading to a higher natural rate of unemployment over time.

Recall the Application About How to Estimate the Shifts in the Natural