Question

Which of the following does NOT represent a potential explanation of the changing natural unemployment rate in the United States?

A.) Women and teenagers entering the workforce between WWII through 1980.
B.) The internet and temporary agencies have improved the matching of workers and jobs.
C.) The increasing productivity of workers in the second half of the 1990s.
D.) The increased value of the dollar in the 1990s.
E.) a more efficient labor market in the 1990s.

Answer 1

The increased value of the dollar in the 1990s does not directly explain changes in the natural unemployment rate, which is influenced by job matching efficiency, demographic changes, and productivity levels.

Step-by-step explanation:

The option that does NOT represent a potential explanation of the changing natural unemployment rate in the United States is D) The increased value of the dollar in the 1990s. While factors such as women and teenagers entering the workforce (Option A).

Advancements in internet and temporary job agencies which have improved job matching (Options B and E), and the increasing productivity of workers (Option C) all have direct impacts on the natural unemployment rate, the increased value of the dollar is more related to international trade and currency markets than to the natural unemployment rate.

Changes in the value of the dollar can affect the competitiveness of a country's exports and imports, but do not directly influence the natural rate of unemployment, which is more closely associated with the job matching efficiency, demographic changes, and workers' productivity.