The nonaccelerating inflation rate of unemployment (NAIRU)is
A) a measure of those temporarily unemployed because of a recession.
B) calculated by dividing the unemployment rate by the employment rate.
C) considered by most economists to be no greater than 1-2 percent of the labor force.
D) based on the assumption that many people will not work unless they are forced to.
E) the unemployment rate associated with a constant rate of inflation.

Question

Quizplus · Accepted Answer

The nonaccelerating inflation rate of unemployment (NAIRU) is the unemployment rate that is associated with a constant rate of inflation. It is the level of unemployment below which inflation rises and above which inflation falls. It is sometimes referred to as the natural rate of unemployment.

The Nonaccelerating Inflation Rate of Unemployment (NAIRU)is