During the early 1990s, companies started downsizing. One of the results of this downsizing was
the permanent reduction in the number of middle management positions. This change in the way
businesses operate would have
(a) increased the natural rate of unemployment.
(b) decreased the natural rate of unemployment.
(c) not affected the natural rate of unemployment.
(d) could have either increased or decreased the full employment
rate of unemployment.
Can you please help with this question?credit union
The answer is c.
The natural rate of unemployment hypothesis states that labour markets clear in the long-run.
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