Because the Natural Rate of Unemployment Is Not Known Precisely,policymakers

question 15

Multiple Choice

Because the natural rate of unemployment is not known precisely,policymakers who use it as a guide for policy must be

• A)less aggressive with policy changes than they would be if they knew the value of the natural rate.
• B)more aggressive with policy changes than they would be if they knew the value of the natural rate.
• C)ready to change policy more quickly.
• D)aware of other data.

---

Definitions:

Resistance

The refusal to accept or comply with something; the act of trying to prevent something by action or argument.

Freudenberger

Herbert Freudenberger, a psychologist known for his pioneering work on burnout, a state of physical, emotional, and mental exhaustion caused by long-term involvement in emotionally demanding situations.

Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress, often resulting from excessive and sustained work or activity.

Hopelessness

A feeling or state of despair where an individual feels that there are no possibilities for improvement in their situation.