What Is the Natural Rate of Unemployment

question 91

Multiple Choice

What is the natural rate of unemployment?

• A)the unemployment rate that exists when the economy is at potential GDP
• B)the unemployment rate that exists when the economy is at a trough in a business cycle
• C)an unemployment rate of 0%
• D)any unemployment rate that is above the inflation rate

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Definitions:

Equity IPO

Initial Public Offering (IPO) of equity shares, where a company offers its stocks to the public for the first time.

Seasoned Offering

An offering of securities by a company that has previously issued securities to the public and is thus familiar to investors.

Red Herring

A preliminary prospectus distributed to prospective investors in a new issue of securities.

Preliminary Prospectus

An initial document provided by a securities issuer that details the investment offering for potential investors but is not yet approved by the relevant authority.