The Nonaccelerating Inflation Rate of Unemployment (NAIRU)is

question 45

Multiple Choice

The nonaccelerating inflation rate of unemployment (NAIRU) is

• A) a measure of those temporarily unemployed because of a recession.
• B) calculated by dividing the unemployment rate by the employment rate.
• C) considered by most economists to be no greater than 1-2 percent of the labor force.
• D) based on the assumption that many people will not work unless they are forced to.
• E) the unemployment rate associated with a constant rate of inflation.

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