The Economy's Self-Correcting Mechanism Always Tends to Push the Unemployment

question 131

Multiple Choice

The economy's self-correcting mechanism always tends to push the unemployment rate back toward a specific rate of unemployment called the

• A)ideal rate of unemployment.
• B)natural rate of unemployment.
• C)full rate of unemployment.
• D)mature rate of unemployment.

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Definitions:

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unattainable.

Tax

Compulsory financial obligation or different form of levy placed on a taxpayer by a government entity to finance public spending.

Excise Tax

A tax imposed on specific goods, services, or activities within a country, often levied on items like tobacco, alcohol, and gasoline to discourage their use or generate revenue.

Deadweight Losses

Economic inefficiencies that occur when the equilibrium in a market is not achieved or is distorted, typically resulting in lost welfare or inefficiency.