What is the natural rate of unemployment, and what types of unemployment constitute the natural rate of unemployment?
What will be an ideal response?
The natural rate of unemployment is the rate of unemployment that exists in the economy when cyclical unemployment is zero. This underlying level of unemployment in the economy consists of frictional and structural unemployment. The natural rate of unemployment is also known as the full-employment rate of unemployment.
You might also like to view...
The coordination task of any economy that answers the question of how output shall be divided among consumers may best be described as
a. output selection. b. production planning. c. distribution. d. None of the above is correct.
The demand curve for a normal good will:
A. slope downward only if the income effect dominates the substitution effect. B. slope downward only if the substitution effect dominates the income effect. C. slope downward. D. slope upward if the good is also a Giffen good.
The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession.
Answer the following statement true (T) or false (F)
The argument that calls for the trade protection of only newly developing industries is known as the ________ argument.
A. learning by doing B. predatory dumping C. infant industry D. developing nation