The Goal for High Employment Should Be a Level of Unemployment

question 50

Multiple Choice

The goal for high employment should be a level of unemployment at which the demand for labor equals the supply of labor. Economists call this level of unemployment the

• A)frictional level of unemployment.
• B)structural level of unemployment.
• C)natural rate level of unemployment.
• D)Keynesian rate level of unemployment.

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Definitions:

Cyclical Unemployment

Unemployment that results from business cycle fluctuations in economic activity, particularly downturns, rather than from changes in the workforce or skill mismatches.

Long Run

A period where all factors of production and costs are variable and no inputs are fixed.

Unemployment

The condition of being jobless and actively seeking employment, reflecting the number of people in the workforce unable to find jobs.

Government Measure

Actions or initiatives taken by a government to regulate, control, or influence a particular aspect of the economy or society.