Which of the following is true about unemployment?
A)the benchmark high-employment level is most likely between 3 and 4 percent
B)In recent years,the appropriate benchmark high-employment level has risen.
C)Based on the experience of the 1960s,a 7 percent unemployment rate was too low to be sustained without a buildup of inflationary pressure
D)During the 1970s,the benchmark high-employment level rose but this was not observed by economists at the time.

Question

Quizplus · Accepted Answer

During the 1970s, the benchmark high-employment level rose due to structural changes in the economy, but this was not immediately recognized by economists, leading to misunderstandings about inflation and unemployment dynamics.

Which of the Following Is True About Unemployment