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The Term Natural in the Phrase Natural Unemployment Rate Implies

Question 68

Multiple Choice

The term natural in the phrase natural unemployment rate implies


A) that the unemployment rate is as low as it can be when it is at the natural rate.
B) that unemployment is at an ideal rate when it is at the natural rate.
C) the unemployment rate that prevails when real GDP equals potential GDP.
D) that the unemployment rate is at the highest rate it can be when it is at the natural rate.
E) that the unemployment rate is at the rate it would be at if there were no minimum wage laws.

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