The Natural Rate of Unemployment Is Not Zero Because

question 172

Multiple Choice

The natural rate of unemployment is not zero because

• A) some workers will always have few skills.
• B) unemployment will always rise during the recessionary phase of the business cycle.
• C) the economy is characterized by dynamic change and imperfect information.
• D) not every member of society is capable of participating in the labor force.

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Definitions:

Stressor

Any stimulus that causes stress, invoking a physical, chemical, or emotional response.

Threat

A perceived danger or risk, posing a potential harm or negative outcome to someone or something.

Second-hand Smoke

Smoke that is not directly inhaled from a burning tobacco product but is breathed in from the environment, posing health risks to nonsmokers.

Exposed

Being in a state where something is uncovered or revealed, potentially subject to harm or criticism.