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.

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Definitions:

Population Growth

Population growth refers to the increase in the number of individuals in a population, often measured by the natural rate of birth minus deaths, as well as migration factors.

Economic Development

The process by which the overall health, well-being, and academic level of a nation or region is improved through industrial, political, and social changes.

Birthrates

are statistical measures showing the number of live births per 1,000 people in a population over a given period of time, reflecting fertility trends.

Peripheral Countries

Refers to nations that are on the margins of the global economy, often characterized by lower levels of industrialization, weaker state institutions, and greater dependence on core countries.