If policymakers attempt to keep unemployment below its natural level,it will drift back up again.

Question

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This statement represents the theory of the natural rate of unemployment, which suggests that there is a minimum unemployment rate that is natural or normal for an economy, based on factors such as the structure of the labor market and demographic trends. If policymakers attempt to keep unemployment below this natural level through interventions such as monetary or fiscal policy, it may provide a temporary boost to employment, but eventually, labor market forces will push unemployment back up towards its natural rate.

If Policymakers Attempt to Keep Unemployment Below Its Natural Level,it