Which of the Following Statements Is True About the Natural

question 13

Multiple Choice

Which of the following statements is true about the natural rate of unemployment?

• A) The actual unemployment rate can never be above the natural rate.
• B) The actual unemployment rate can never be at the natural rate.
• C) The natural rate of unemployment consists of both cyclical and structural unemployment.
• D) Sometimes the actual unemployment rate is below the natural rate.
• E) The natural rate of unemployment consists of both cyclical and frictional unemployment.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired but not yet retired or resold.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, reflecting the investment in the business.

Dividends Payable

A liability account that represents the amount of dividends that a company has declared but not yet paid out to its shareholders.

Treasury Stock

Represents a company's own shares that have been reacquired and held in the company's treasury.