The designation "natural" implies that the natural rate of unemployment
A)is desirable.
B)is constant over time.
C)is impervious to economic policy.
D)does not go away on its own even in the long run.

Question

Quizplus · Accepted Answer

The natural rate of unemployment refers to the level of unemployment that persists in an economy in the long run, even when the economy is at full employment. It includes frictional and structural unemployment and does not go away on its own.

The Designation "Natural" Implies That the Natural Rate of Unemployment