Asked by Becca Moore on Jun 09, 2024
Verified
Unions contribute to
A) frictional unemployment but not the natural rate of unemployment.
B) the natural rate of unemployment but not frictional unemployment.
C) both frictional unemployment and the natural rate of unemployment.
D) neither frictional unemployment nor the natural rate of unemployment.
Natural Rate
A term often used to refer to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation.
Frictional Unemployment
Short-term unemployment that arises from the process of workers moving between jobs, including fresh entrants to the labor market.
Labor Unions
Organizations formed by workers from related fields that work for the collective rights of the members, including better wages, working conditions, and benefits.
- Distinguish between cyclical unemployment and the natural rate of unemployment.
- Learn about the role and implications of labor unions on compensation, job creation, and the labor market environment.
Verified Answer
BB
boolby Billion dollars babyJun 16, 2024
Final Answer :
B
Explanation :
Unions can contribute to the natural rate of unemployment by negotiating for higher wages, which can lead to higher unemployment if companies cannot afford to hire as many workers. However, they do not directly contribute to frictional unemployment, which is the short-term unemployment that occurs when people are between jobs or entering the workforce.
Learning Objectives
- Distinguish between cyclical unemployment and the natural rate of unemployment.
- Learn about the role and implications of labor unions on compensation, job creation, and the labor market environment.