Which hypothesis states that the economy tends toward the natural rate of unemployment in the long run?

Question

Quizplus · Accepted Answer

The natural rate of unemployment hypothesis states that in the long run, the economy will tend towards the natural rate of unemployment, which is the rate that still exists even when the economy is at full employment. This rate is determined by structural factors such as demography, technology, and labor market institutions.

Which Hypothesis States That the Economy Tends Toward the Natural