A difficulty faced by policymakers who wish to use the unemployment rate as a guide to whether the economy is weak or strong is that
A)the natural rate of unemployment is hard to measure.
B)the natural rate of unemployment almost never changes.
C)policymakers must use data on output to tell whether the unemployment rate is too high or too low.
D)the impact of policy on the economy is subject to long and variable lags.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is difficult to measure accurately because it is influenced by various factors such as changes in the labor force, technology, and policies, making it a less reliable indicator for assessing the economy's strength or weakness.

A Difficulty Faced by Policymakers Who Wish to Use the Unemployment