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When the Actual Unemployment Rate Is Equal to the NAIRU

Question 12

Multiple Choice

When the actual unemployment rate is equal to the NAIRU, we can say that


A) frictional and structural unemployment are both zero.
B) frictional unemployment is zero.
C) the economy is experiencing no lost output due to frictional unemployment.
D) all remaining unemployment is structural.
E) the economy is at full employment.

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