The Natural Unemployment Rate Is Based on

question 193

Multiple Choice

The natural unemployment rate is based on

• A)rationing and job-search explanations.
• B)cyclical unemployment.
• C)seasonal unemployment.
• D)the discouraged-worker effect.
• E)the belief that the free market works.

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Definitions:

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking authorities, to ensure bank liquidity.

Actual Reserves

The physical amount of a commodity or cash held as reserves in a financial institution or by an organization.

Monetary Policy

Measures undertaken by a government's central bank to regulate the economy's money supply and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.

President

The head of state and government in a republic, often elected to lead the executive branch and uphold the laws and constitution of the nation.