Which of the Following Is True of the Natural Rate

question 26

Multiple Choice

Which of the following is true of the natural rate of unemployment?

• A) The natural rate of unemployment excludes frictional unemployment.
• B) The natural rate of unemployment excludes long-term structural unemployment.
• C) The natural rate of unemployment is the socially optimal or desirable rate of unemployment.
• D) The natural rate of unemployment is lower than the actual rate of unemployment during a recession.