Which of the Following Statements About the Natural Rate of Unemployment

question 73

Multiple Choice

Which of the following statements about the natural rate of unemployment is correct?

• A)In the 1960s, economists thought the natural rate was 4%.
• B)Today, most economists believe the natural rate is zero.
• C)When unemployment is at its natural rate, then only frictional unemployment remains.
• D)When unemployment is at its natural rate, then only structural unemployment remains.

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Definitions:

Colonial Development

The process by which European powers established and expanded colonies overseas, often involving the exploitation of local resources and indigenous populations.

English

Pertaining to England or its people, language, or culture; English refers to the language spoken in England and many other parts of the world.

Tensions

The state of being stretched tight, often used metaphorically to describe strained relations between entities.

Colonists

People who settle in a new territory but remain subjects or citizens of their parent state or country.