When unexpected inflation is zero, the corresponding unemployment rate is the:
A)cyclical unemployment rate.
B)non-accelerating rate of inflation.
C)nonequilibrium unemployment rate.
D)non-accelerating inflation rate of unemployment (NAIRU).

Question

Quizplus · Accepted Answer

The non-accelerating inflation rate of unemployment (NAIRU) refers to the level of unemployment when inflation is stable, not accelerating or decelerating, which aligns with the scenario of unexpected inflation being zero.

When Unexpected Inflation Is Zero, the Corresponding Unemployment Rate Is