Question

the natural rate of unemployment a. is a temporary low rate that cannot be maintained. b. is fixed; it cannot be altered by public policy. c. is equal to the number of persons unemployed divided by the number in the labor force. d. is the unemployment rate accompanying the economy's maximum sustainable rate of output.

Answer 1

The natural rate of unemployment is  is the unemployment rate accompanying the economy's maximum sustainable rate of output. Thus the correct option is D.

What is unemployment?

Unemployment refers to a condition when there is no availability of job opportunities in the market when a person is willing to or has enough qualifications for the job.

It predicts that it will not be able to boost output above the level of natural output and that the unemployment rate cannot be lowered below the level of natural unemployment.

Therefore, option D is appropriate.

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