In the Long Run the Unemployment Rate Equals

question 2

Multiple Choice

In the long run the unemployment rate equals

• A)zero.
• B)the cyclical rate of unemployment.
• C)the natural rate of unemployment.
• D)the sum of the cyclical and natural rate of unemployment.

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Definitions:

Causal Relationship

A connection between two variables where a change in one directly affects the change in the other.

Actor-Observer Effect

A psychological phenomenon in which people tend to attribute their own actions to situational factors while attributing other people's actions to their internal characteristics.

Fundamental Attribution Error

The tendency to explain someone's behavior based on internal factors, such as personality or disposition, while underestimating external factors.

Locus of Causality

The perceived source of control over events in an individual's life, internal or external to oneself.