The long-term rate of unemployment,determined by structural forces in labor and product markets,defines the
A)Frictional rate of unemployment.
B)Seasonal rate of unemployment.
C)Natural rate of unemployment.
D)Cyclical rate of unemployment.

Question

Quizplus · Accepted Answer

The long-term rate of unemployment is determined by structural factors such as changes in technology and shifts in consumer demand, which define the natural rate of unemployment. The frictional rate of unemployment refers to the short-term unemployment that arises as workers search for new jobs, while the seasonal rate of unemployment fluctuates due to seasonal changes in industries such as agriculture or tourism. The cyclical rate of unemployment refers to the short-term fluctuations in unemployment that are tied to changes in the business cycle.

The Long-Term Rate of Unemployment,determined by Structural Forces in Labor