The Natural Rate of Unemployment Is Defined as the Rate

question 89

Multiple Choice

The natural rate of unemployment is defined as the rate of unemployment that

• A)prevails in long-run macroeconomic equilibrium,when all workers and employers have fully adjusted to any changes in the economy.
• B)prevails in the short-run macroeconomic equilibrium,before workers and employers have had a chance to adjust to an economic shock.
• C)exists due to welfare and employment benefits that reduce potential workers' incentives to find work.
• D)exists only during periods of recession or depression in the economy.

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Definitions:

Stock Certificate

A physical document that represents ownership of shares in a company.

Certificate of Deposit

A time-bound, interest-bearing financial product offered by banks, requiring the holder to leave a lump-sum deposit untouched until maturity.

Postdating

The act of dating a document, check, contract, or other legal instruments with a date that is later than the actual date.

Negotiability

The characteristic of a financial instrument that allows it to be transferred or assigned from one party to another.