Suppose the Actual Rate of Unemployment Is 4 Percent

question 17

Multiple Choice

Suppose the actual rate of unemployment is 4 percent. What is the natural rate of unemployment if actual output equals potential output?

• A)0 percent
• B)−4 percent
• C)2 percent
• D)4 percent

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Definitions:

Mintzberg

Henry Mintzberg, a renowned academic and author, known for his work on business and organizational strategy, as well as the classification of managerial roles and organizational structures.

Intuition

The ability to understand or know something immediately based on one's feelings rather than conscious reasoning.

Committed Employees

Workers who are emotionally attached to their jobs and organization, demonstrating loyalty and a high level of engagement.

Reported Absenteeism

The act of documenting and tracking the instances when employees are absent from work without valid reasons.