The Natural Rate of Unemployment Consists of Frictional Unemployment Plus

question 278

True/False

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

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Definitions:

Velocity

The rate at which money circulates within an economy, often measured as the ratio of nominal GDP to the money supply.

Price Level

An index that measures the average relative level of prices of goods and services in an economy over a period of time.

Inflation

The speed at which the overall price level for goods and services increases, thereby diminishing the buying power.

Shoeleather Costs

The resources wasted when inflation encourages people to reduce their money holdings.