Which of the following is the consensus among most economists today with respect to the management of unemployment?
A)Government can't do anything about it.
B)Expansionary policy can be used to achieve permanently low unemployment.
C)Unemployment cannot be kept below the natural rate.
D)Unemployment cannot be kept anywhere near the natural rate.

Question

Quizplus · Accepted Answer

The consensus among most economists today is that unemployment cannot be kept below the natural rate, which is the rate of unemployment that exists when the economy is in equilibrium and there is neither inflationary nor deflationary pressure. This is because the natural rate of unemployment is determined by underlying structural factors such as demographics, labor market institutions, and technology, and cannot be permanently lowered through expansionary policy alone.

Which of the Following Is the Consensus Among Most Economists