When an Economy Is at Its Natural Rate of Unemployment

question 105

Multiple Choice

When an economy is at its natural rate of unemployment, which of the following will be true?

• A)The unemployment rate will be 0%.
• B)The labour force participation rate will be 100%.
• C)The unemployment rate will be greater than 0%.
• D)Only structural unemployment as a result of technological change will exist in the economy.

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Definitions:

General Knowledge

Broad, useful information and facts about a wide range of topics rather than detailed knowledge in a specific area.

Long-Term Memory

The phase or type of memory responsible for the storage of information over an extended period, potentially as long as a lifetime.

Curve Of Forgetting

A graph that illustrates the decline of memory retention over time, where information is lost exponentially if no effort is made to retain it.

Long-Term Memory

The phase of the memory system that is capable of storing information for long periods of time, often throughout a person's life.