Which of the Following Statements About the Natural Rate of Unemployment

question 105

Multiple Choice

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

• A)The natural rate of unemployment declined during the 1970s.
• B)An aging labor force causes the natural rate of unemployment to decline.
• C)Economists are able to precisely calculate the natural rate of unemployment.
• D)The natural rate of unemployment has remained constant over the past 30 years.
• E)The term natural in natural rate of unemployment is meant to imply that this is the unemployment rate that the economy should always try to strive for.

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Definitions:

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the roles, responsibilities, and authority of employees within the organization.

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent entity and its subsidiaries as if the group were a single entity.

Parent Entity

A business entity that possesses a majority stake in one or more subsidiary companies.

Reporting Entity

is an entity for which there are users who rely on its financial statements to make economic decisions.