In the model of this chapter, the natural rate of unemployment is the unemployment rate:
A)where job findings equal job separations.
B)job findings are maximized.
C)the job separation rate equals the job finding rate.
D)job separations are minimized.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is defined as the rate where the number of people finding jobs equals the number of people losing jobs, maintaining a stable unemployment rate.

In the Model of This Chapter, the Natural Rate of Unemployment