The natural rate of unemployment in the economy is determined by the Congress and the president of the country.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is not determined by the Congress and the president. It is a theoretical concept that represents the rate of unemployment that exists when the economy is functioning at its potential output and there is no cyclical unemployment. It is determined by structural factors such as demographics, technology, and institutional arrangements.

The Natural Rate of Unemployment in the Economy Is Determined