The actual unemployment rate equals the natural unemployment rate.
A)1)is true; 2)is false.
B)2)is true; 1)is false.
C)1)and 2)are false.
D)1)and 2)are true.
E)1)is true; 2)is true if the natural unemployment rate is too high.

Question

Quizplus · Accepted Answer

The actual unemployment rate equals the natural unemployment rate when the economy is at full employment, meaning there is no cyclical unemployment.

The Actual Unemployment Rate Equals the Natural Unemployment Rate