Which of the following statements about the natural rate of unemployment is correct?
A) Currently, most economists think that the natural rate is about 5%.
B) Currently, most economists believe the natural rate is zero.
C) When unemployment is at its natural rate, then only frictional unemployment remains.
D) When unemployment is at its natural rate, then only structural unemployment remains.

Question

Quizplus · Accepted Answer

Currently, most economists estimate that the natural rate of unemployment is about 4-5%. This means that at this level of unemployment, there is no cyclical unemployment, only frictional and structural unemployment remains.

Which of the Following Statements About the Natural Rate of Unemployment