Which of the Following Statements Concerning the Natural Rate of Unemployment

question 108

Multiple Choice

Which of the following statements concerning the natural rate of unemployment is incorrect?

• A)It is made up of both frictional and structural unemployment.
• B)It is the rate of unemployment at full employment.
• C)It is when the total number of job vacancies equals the number of people unemployed.
• D)It is probably about 5% to 7% in Canada today.
• E)It is when both frictional and structural unemployment is zero.

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed within a particular area or country.

Basic Decisions

Fundamental choices or determinations made to guide actions, policies, or strategies, often in businesses or personal planning.

Economies

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Goods Produced

The total quantity of physical items that are manufactured or processed by a company or economy within a specific time frame.