The normal level of unemployment that persists in an economy in the long run is:

Question

Quizplus · Accepted Answer

The normal level of unemployment that persists in an economy in the long run is known as the natural rate of unemployment. This rate includes frictional and structural unemployment, which are unavoidable in any economy, and is generally accepted as being around 4-5% in developed countries. Therefore, option A is the correct answer. Options B, C, and D are incorrect as they do not accurately describe the natural rate of unemployment.

The Normal Level of Unemployment That Persists in an Economy