Which of the following is true?
A)The natural rate of unemployment is present when the economy is operating at full employment.
B)The natural rate of unemployment is equal to the number of persons unemployed divided by the number of persons in the labor force.
C)The natural rate of unemployment is primarily the result of the ups and downs of the business cycle.
D)Public policy cannot influence the natural rate of unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is present when the economy is operating at full employment, as it includes only frictional and structural unemployment, not cyclical unemployment.

Which of the Following Is True