Final answer:
The increase in labor force participation among women leads to a higher natural rate of unemployment due to demographic changes, not cyclical economic fluctuations.
Step-by-step explanation:
The increase in labor force participation rates among women is better thought of as causing an increase in the natural rate of unemployment, rather than cyclical unemployment. This is because the inclusion of more women in the workforce is a result of changing social demographics, which is a long-term trend, not a short-term economic fluctuation. Cyclical unemployment is associated with the ups and downs of the economy, while the natural rate of unemployment factors in things like demographics and the structure of labor markets, which change more slowly over time.
Therefore, the correct answer to the question is: b) Increase in natural rate of unemployment; due to changing demographics. This shift in demographics has resulted in a higher natural unemployment rate as the economy adjusts to a larger labor pool over time.