The Natural Unemployment Rate

question 307

Multiple Choice

The natural unemployment rate

• A) is equal to cyclical unemployment.
• B) fluctuates with the rate of inflation.
• C) is the unemployment rate that occurs when the economy is at full employment.
• D) is a constant figure of about 4 percent.

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Definitions:

Secure Self-esteem

A stable and positive evaluation of oneself, characterized by confidence and a sense of security in one's worth and abilities, regardless of external validation.

Free Association

A psychoanalytic technique where the patient speaks freely to uncover repressed thoughts and feelings.

Better-than-average Effect

A cognitive bias where individuals overestimate their own qualities and abilities relative to others.

Self-serving Bias

A common tendency for individuals to attribute positive outcomes to their own character but attribute negative outcomes to external factors.