At the economy's natural rate of unemployment,

Question

Quizplus · Accepted Answer

The natural rate of unemployment represents the level of unemployment that persists in the economy even in the long run when the economy is producing at its potential output. This represents the equilibrium point between the number of workers seeking jobs and the number of job openings available in the economy. At this point, there is only frictional and structural unemployment, and cyclical unemployment is minimized or non-existent. Therefore, choice A is the best answer.

At the Economy's Natural Rate of Unemployment