Which of the following explain the natural rate of unemployment?
i. job search.
ii. the Okun Gap.
iii. the production function

Question

Quizplus · Accepted Answer

The natural rate of unemployment is primarily explained by job search, as individuals must search for and match with new jobs, and the production function, as factors of production determine the level of output and employment. The Okun Gap, which refers to the negative relationship between GDP growth and unemployment, is not a primary explanation for the natural rate of unemployment.

Which of the Following Explain the Natural Rate of Unemployment