Which of the following statements is incorrect?
A) The natural rate of unemployment is generally considered the equivalent of full employment.
B) The natural rate of unemployment consists of only frictional or structural unemployment.
C) The natural rate of unemployment is the level at which inflationary pressures in the economy are at their maximum.
D) The natural rate of unemployment is when cyclical unemployment is zero.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is not associated with maximum inflationary pressures; rather, it is the level of unemployment where the economy is at full employment, with only frictional and structural unemployment present, and no cyclical unemployment.

Which of the Following Statements Is Incorrect