Which of the Following Statements About the Natural Rate of Unemployment

question 60

Multiple Choice

Which of the following statements about the natural rate of unemployment is correct?

• A) Currently, most economists think that the natural rate is about 5%.
• B) Currently, most economists believe the natural rate is zero.
• C) When unemployment is at its natural rate, then only frictional unemployment remains.
• D) When unemployment is at its natural rate, then only structural unemployment remains.

---

Definitions:

Selling Price

The amount of money for which a company offers to sell its products or services to customers.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Premium on Bonds Payable

The premium on bonds payable is the amount by which a bond's selling price exceeds its face value, reflecting additional value due to lower-than-market interest rates.

Redeems

The act of exchanging something, such as a coupon or voucher, for goods, services, or a monetary refund.