What is the consensus among most economists today with respect to the management of unemployment?
A) Government can't do anything about it.
B) Expansionary policy can be used to achieve permanently low unemployment.
C) Unemployment cannot be kept below the natural rate.
D) Unemployment cannot be kept anywhere near the natural rate.

Question

Quizplus · Accepted Answer

The most widely accepted view among economists is that unemployment cannot be kept below the natural rate, also known as the non-accelerating inflation rate of unemployment (NAIRU). This is the lowest level of unemployment that can be sustained without causing inflationary pressures. While expansionary policies may temporarily reduce unemployment below the natural rate, they will eventually lead to inflation. Therefore, the best approach is to focus on policies that promote long-term economic growth and a flexible labor market.

What Is the Consensus Among Most Economists Today with Respect