The natural rate of unemployment:
A)is fixed over time.
B)is found by adding the cyclical and structural unemployment rates.
C)may change from one decade to another.
D)cannot be changed through public policy.

Question

Quizplus · Accepted Answer

The natural rate of unemployment may change from one decade to another due to structural changes in the economy, changes in demographics, and other factors. It is not fixed over time, nor is it found by adding the cyclical and structural unemployment rates. While the natural rate of unemployment cannot be eliminated through public policy, it can be influenced by policies that affect the structural and frictional unemployment rates.

The Natural Rate of Unemployment