In the long run,but not in the short run,
A)cyclical unemployment can exist
B)structural unemployment can exist
C)frictional unemployment can exist
D)the actual rate of unemployment equals the natural rate of unemployment
E)actual output can exceed potential output

Question

Quizplus · Accepted Answer

In the long run, the economy tends to return to its natural rate of unemployment, where cyclical unemployment is zero, and only structural and frictional unemployment exist. Thus, the actual rate of unemployment equals the natural rate of unemployment.

In the Long Run,but Not in the Short Run