The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.

Question

Quizplus · Accepted Answer

The statement is true. The natural rate of unemployment is not fixed and can change due to various factors such as changes in technology, demographic shifts, and institutional changes. For example, improvements in technology may lead to new job opportunities, while demographic changes may affect the size and composition of the labor force. Similarly, changes in laws and government policies can also impact the natural rate of unemployment.

The Natural Rate of Unemployment Can Change Over Time as Technological