The Unemployment Rate That Exists When the Economy Is at Potential

question 120

Multiple Choice

The unemployment rate that exists when the economy is at potential GDP is called

• A)the natural rate of unemployment.
• B)cyclical unemployment.
• C)deflation-based unemployment.
• D)zero-rate unemployment.

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Definitions:

Industry Life Cycle

The stages through which an industry goes from its inception to its decline, typically categorized as introduction, growth, maturity, and decline.

Necessities

Basic needs required for sustaining human life, such as food, water, shelter, and clothing.

Income

Money received, especially on a regular basis, for work or through investments.

Industry Life Cycle

A concept that describes the stages of growth and development that an industry goes through from inception, through growth, maturity, and eventually decline.