The Natural Rate of Unemployment Is the Rate of Unemployment

question 33

Multiple Choice

The natural rate of unemployment is the rate of unemployment:

• A) that occurs when the markup of prices over costs is zero.
• B) where the markup of prices over costs is equal to its historical value.
• C) that occurs when the money market is in equilibrium.
• D) that occurs when both the goods and financial markets are in equilibrium.
• E) consistent with both the wage- setting and price- setting equations.

---

Definitions:

Materials Used in Production

The raw materials and components that are consumed in the manufacturing process to produce finished goods.

Perpetual Inventory Records

This is an inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Direct Materials

Raw materials that are traceable to the manufacturing of a product and are an integral part of the finished product.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimated costs and activity levels.