In the macroeconomic short- run equilibrium,
A) there is frictional unemployment.
B) there is structural unemployment.
C) the economy might not be at the natural unemployment. rate
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

In the short-run equilibrium, the economy can experience frictional and structural unemployment, and it might not be at the natural rate of unemployment due to various short-term factors affecting supply and demand.

In the Macroeconomic Short- Run Equilibrium