The natural rate of unemployment
A)arises from a single problem that has a single solution.
B)is easy for policymakers to reduce.
C)Both a and b are correct.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the rate that occurs when the labor market is in equilibrium, and there is no cyclical unemployment. This rate is influenced by multiple factors, such as demographics, technological advances, and institutional factors, and it varies over time. Policymakers cannot easily reduce the natural rate of unemployment since it is not the result of a single problem that has a single solution.

The Natural Rate of Unemployment