The natural rate of unemployment ________.

Question

Quizplus · Accepted Answer

The natural rate of unemployment varies across time and countries depending on structural factors such as demographics, technology, and institutions. It is not a constant and cannot be reduced to a specific percentage like option A suggests. Option D is incorrect as the natural rate of unemployment is not dependent on the cyclical rate of unemployment but is instead the long-term rate that the economy tends to return to after fluctuations.

The Natural Rate of Unemployment ________