The Natural Rate of Unemployment

question 67

Multiple Choice

The natural rate of unemployment

• A)is fixed;it cannot be changed with public policy.
• B)fluctuates substantially over the business cycle.
• C)is associated with the economy's maximum sustainable output rate.
• D)declines when youthful workers (under age 25)become a larger proportion of the labor force.

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Definitions:

Britain

Refers to the island containing England, Scotland, and Wales, or more broadly to the United Kingdom.

Zimmermann Telegram

A secret diplomatic communication sent by Germany in 1917 proposing a military alliance with Mexico if the U.S. entered World War I against Germany, influencing the U.S. decision to declare war.

Military Aid

Support provided by one country to another in the form of defense equipment, training, or other resources intended for military purposes.

Germany

A country in Central Europe, known for its history, culture, and economic prowess, as well as for playing a major role in both World Wars and the Cold War.