Question

A candidate for office theorizes that the high unemployment rate is due to a high natural rate of unemployment. Which of the following is the best plan that the candidate might present to lower the natural rate of unemployment?

A. Require firms to fill job openings within 3 months of first advertising a position.
B. Use exdpansionary fiscal policy to increase aggregate demand and create more jobs
C. Increase tariffs to protect domestic industries that will provide more jobs.
D. Repeal restrictive labor laws that make it cumbersome for firms to hire new workers.
E. Increase unemployment benefits so that the unemployed can move to a new location that has more job opportunities.
F. Implement stricter immigration laws to prevent immigrants from taking jobs away from citizens.

Answer 1

D. Repeal restrictive labor laws that make it cumbersome for firms to hire new workers.

Step-by-step explanation:

Got answer wrong first try. Then got this as the correct answer

Answer 2

C. Increase tariffs to protect domestic industries that will provide more jobs.

Step-by-step explanation:

Remember, the problem here according to the high natural rate of unemployment principle is the rate at which people lose their jobs. In other words, the problem not the lack of jobs, but the desired need to create job sustainability (protection).

Hence, the best plan that the candidate might present to lower the natural rate of unemployment is to Increase tariffs to protect domestic industries that will provide more jobs. By protecting these industries they can better sustain their workers thereby lowering the natural rate of unemployment.