The Natural Rate of Unemployment

question 46

Multiple Choice

The natural rate of unemployment:

• A)​is the sum of both frictional and structural unemployment when they are at a maximum.
• B)​includes only frictional unemployment.
• C)​includes only structural unemployment.
• D)​includes only cyclical unemployment.

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Definitions:

Resources Are Scarce

The principle that the availability of natural, human, and capital resources is limited, necessitating choices about their allocation and use.

Normative Statements

Statements that express opinions on how the world ought to be, involving value judgments rather than factual claims.

Expressions Of Facts

Statements that aim to convey information about reality or actual events without alteration.

Economic Model

A simplified representation or framework that economists use to describe and analyze economic processes, relationships, or phenomena.