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Which of the Following Is True of the Natural Rate

Question 221

Multiple Choice

Which of the following is true of the natural rate of unemployment?


A) The natural rate of unemployment excludes frictional unemployment.
B) The natural rate of unemployment excludes long-term structural unemployment.
C) The natural rate of unemployment is the socially optimal or desirable rate of unemployment.
D) The natural rate of unemployment is lower than the actual rate of unemployment during a recession.

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