In the 2009, most professional estimates of sustainable employment levels suggest an unemployment rate of around
A)3 percent.
B)4-4.5 percent.
C)10 percent.
D)2-3 percent.

Question

Quizplus · Accepted Answer

Most professional estimates suggest that a sustainable unemployment rate in 2009 would be around 4-4.5 percent. This takes into account natural fluctuations in the labor market and allows for some level of job turnover and frictional unemployment. A rate of 3 percent or lower would be considered too low and could lead to labor shortages and inflationary pressure, while a rate of 10 percent or higher would indicate a more severe economic downturn or structural changes in the labor market. A rate of 2-3 percent would also be considered too low and unrealistic given the historical trend of unemployment rates in most economies.

In the 2009, Most Professional Estimates of Sustainable Employment Levels