The natural rate is natural in the sense that macroeconomic policy
A) sees it all the time
B) can ignore it
C) can't do much about it
D) is a natural reaction to unemployment
E) has always recognized that some workers will be voluntarily unemployed

Question

Quizplus · Accepted Answer

The natural rate of unemployment is determined by structural features of the labor market, such as mismatches between job requirements and worker skills. Macroeconomic policy cannot do much about these structural features, so the economy will tend to gravitate towards the natural rate of unemployment regardless of policy interventions.

The Natural Rate Is Natural in the Sense That Macroeconomic