Economists Are Able to Estimate the Natural Rate of Unemployment

question 101

Multiple Choice

Economists are able to estimate the natural rate of unemployment in the United States:

• A) very precisely.
• B) in a 95 percent confidence interval of 2 to 3 percentage points.
• C) in a 95 percent confidence interval of 10 to 20 percentage points.
• D) only in years when there are no supply shocks.

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Definitions:

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A form of telecommunication service that is delivered through a wired connection, typically using copper wires or fiber-optic cables.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a change in its price.

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Certificates or electronic entries that grant the holder a chance to win a prize in a drawing or contest, often governed by state or national lotteries.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity to price changes.