Which of the Following Best Defines the Natural Rate of Unemployment

question 176

Multiple Choice

Which of the following best defines the natural rate of unemployment?

• A)It is the unemployment rate that would prevail with zero inflation.
• B)It is the rate associated with the highest possible level of GDP.
• C)It is the difference between the long-run and short-run unemployment rates.
• D)It is the amount of unemployment that the economy normally experiences.