The natural rate of unemployment is defined as the unemployment rate that exists in the absence of:
a. structural unemployment.
b. frictional unemployment.
c. cyclical unemployment.
d. seasonal unemployment.
e. inflation.
c
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What is the relationship between debt, falling commodity prices and rainforest degradation?
What will be an ideal response?
Annie is an excellent baker and Sam has a plentiful farm. If Sam trades eggs and butter to Annie for some of Annie's bread and pastries,
a. only Sam is made better off by trade. b. only Annie is made better off by trade. c. both Sam and Annie are made better off by trade. d. neither Sam nor Annie are made better off by trade.
If countries 1 and 2 produce only two goods, A and B, and they have the same opportunity cost for the production of good A (and thus good B), then
A) each country will specialize in the production of one good and engage in trade. B) neither country will specialize in the production of a good, but both will engage in trade. C) one country will specialize in the production of a good, and both will engage in trade. D) neither country will specialize in the production of a good, and there will be no incentive for trade.
What problems can high inflation rates cause for the economy?
What will be an ideal response?