The effect on the natural rate of unemployment as a result of new legislation passed is that the quantity of labor demanded declines while the quantity supplied of labor rises.
What is unemployment?
Unemployment is when a person who is willing and able to work is unable to fine one. Here people are actively seeking a job but are unable to find work.
Unions may affect the natural rate of unemployment through insiders and outsiders effect.
This is because when unions raise the wage above the equilibrium level, the quantity of labor demanded declines while the quantity supplied of labor rises, so there is unemployment.
Learn more about unemployment here: https://brainly.com/question/305041
