Each of the following phenomena hinders the precise estimation of the natural rate of unemployment except:
A) supply shocks such as oil price increases.
B) demographic changes such as the aging baby boomers.
C) policy changes such as minimum wage increases.
D) introduction of new products such as DVD players.

Question

Quizplus · Accepted Answer

The introduction of new products such as DVD players may affect the composition of industries and jobs but does not significantly impact the natural rate of unemployment, which is determined by structural and demographic factors. On the other hand, supply shocks, demographic changes, and policy changes can have a significant impact on the natural rate of unemployment.

Each of the Following Phenomena Hinders the Precise Estimation of the Natural