When an economy is at its natural rate of unemployment which of the following will be true?
A) The unemployment rate will be 0 per cent.
B) The labour force participation rate will be 100 per cent.
C) The unemployment rate will be greater than 0 per cent.
D) Only structural unemployment as a result of technological change will exist in the economy.
Correct Answer:
Verified
Q83: Why is 'frictional unemployment' unavoidable?
_
_
Q88: What is the 'non-accelerating inflation rate of
Q92: The unemployment rate rises for a time
Q93: By offering training to workers whose firms
Q94: When the labour market is at full
Q96: Explain what economists mean by 'full employment'
Q98: Fluctuations in aggregate demand cause structural unemployment.
Q104: Enterprise bargaining is the negotiation of wages
Q109: Describe the three types of unemployment.
Q118: The natural rate of unemployment consists of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents