What Is the Natural Rate of Unemployment

question 91

Multiple Choice

What is the natural rate of unemployment?

• A)the unemployment rate that exists when the economy is at potential GDP
• B)the unemployment rate that exists when the economy is at a trough in a business cycle
• C)an unemployment rate of 0%
• D)any unemployment rate that is above the inflation rate

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Definitions:

Reflexes

Automatic, involuntary responses to external stimuli, present at birth and often used to assess neurological function.

Excitability

The quality of being easily stimulated or responsive to stimuli, often leading to rapid changes in behavior.

Embryonic Period

The stage of prenatal development from fertilization of the egg to the end of the eighth week, where major organs and structures begin to develop.

Teratogens

Environmental agents that can cause birth defects or developmental malformations if exposed to a fetus.