If unemployment persists for a long period of time,the natural rate of unemployment rises.

Question

Quizplus · Accepted Answer

The longer unemployment persists, the more it becomes ingrained in the economy, leading to a higher natural rate of unemployment. This is because workers who are unemployed for long periods of time may lose skills, become discouraged, or drop out of the labor force altogether, making it harder for them to find new jobs in the future. As a result, the economy may settle into a higher level of unemployment that is considered "natural" or "normal."

If Unemployment Persists for a Long Period of Time,the Natural