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:

Federal Government

The national government of a federal country, which holds the authority over matters that affect the country as a whole.

Horizontal Equity

The principle that individuals with similar incomes or circumstances should be taxed at the same rate.

Demographic Trends

Patterns in the composition of a population over time, such as age, race, gender distribution, which can influence various aspects of societal behavior and policy.

Government's Budget Deficit

A situation where a government spends more than it earns in revenue over a specific period.