In a dynamic economy under ideal conditions,the unemployment rate
A)should be zero.
B)is greater than zero percent due to natural unemployment.
C)increases as the price level rises.
D)decreases as the price level falls.
E)averages 6 percent.

Question

Quizplus · Accepted Answer

Even in an ideal economy, there will always be some degree of natural unemployment which includes people who are temporarily between jobs, those who are switching industries, and those who lack the skills or education needed for available jobs. Therefore, the unemployment rate is greater than zero percent.

In a Dynamic Economy Under Ideal Conditions,the Unemployment Rate