Which of the Following Defines the Natural Rate of Unemployment

question 166

Multiple Choice

Which of the following defines the natural rate of unemployment?  

• A) the unemployment rate that excludes seasonal unemployment 
• B) the unemployment rate that excludes structural unemployment 
• C) the unemployment rate when none of the work force is unemployed longer than six weeks 
• D) the unemployment rate at which the economy is producing at its potential GDP

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Definitions:

Unemployment

The condition of being without a job, typically measured by the unemployment rate, which is the percentage of the labor force that is jobless and seeking employment.

Stigma

A mark of disgrace associated with a particular circumstance, quality, or person, often leading to discrimination.

Affirmative Action

Policies and actions designed to promote inclusion and correct imbalances in employment or educational opportunities for marginalized groups.

Incompetence

The lack of necessary skills, qualities, or ability to perform a specific task or duty adequately.