Which of the Following Is True of the Natural Unemployment

question 1

Multiple Choice

Which of the following is true of the natural unemployment rate?

• A) It is equal to zero when the economy is not in a recession.
• B) It has been fixed at 4% during the post-World War II period.
• C) It is higher if structural or frictional unemployment is higher.
• D) It can change dramatically within a matter of months.

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Definitions:

Encoding

The initial process of converting information into a form that can be stored and recalled later from memory.

Memory

The faculty by which the mind stores and remembers information.

Consolidation

The process by which memories become stable in the brain after their initial acquisition, often occurring during sleep.

Retention

The ability to keep or hold information in memory.