Which of the Following Statements About the Natural Rate of Unemployment

question 105

Multiple Choice

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

• A)The natural rate of unemployment declined during the 1970s.
• B)An aging labor force causes the natural rate of unemployment to decline.
• C)Economists are able to precisely calculate the natural rate of unemployment.
• D)The natural rate of unemployment has remained constant over the past 30 years.
• E)The term natural in natural rate of unemployment is meant to imply that this is the unemployment rate that the economy should always try to strive for.

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Definitions:

Plant Asset

Long-term tangible assets used in the operation of a business and not intended for resale.

Current Liabilities

Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or during the business's operating cycle, whichever is longer.

Current Assets

Assets that a company expects to convert into cash or use up within one year or the operating cycle, whichever is longer.