The Natural Unemployment Rate

question 262

Multiple Choice

The natural unemployment rate

• A) is attained whenever the unemployment rate is less than 5 percent because 95 percent employment is considered full employment.
• B) has been estimated to range between 4 percent and 6 percent in the United States in recent years.
• C) occurs when 100 percent of the labor force is employed.
• D) estimated to be close to 9 percent in recent years in the United States.

---

Definitions:

Capital Goods

Assets with a long lifespan that are employed in the creation of goods and services, including machinery, equipment, and buildings.

Economic System

The structure and methods by which a society decides on the allocation of resources and distribution of goods and services.

Goodwill

The intangible asset that arises as a result of the reputation, brand, or customer relations of a business, adding value beyond its tangible assets.

Intangible Capital

Assets that are not physical in nature, such as intellectual property, brand recognition, and human capital, which can contribute to a company's value.