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Ad libitum [116K]
3 years ago
15

If the unemployment rate is equal to the natural rate of unemployment, then the economy's

Business
1 answer:
Schach [20]3 years ago
5 0

Answer: the economy is efficient

Explanation: Natural rate of unemployment is the rate of unemployment when the economy is believed to be at its best,it is also the rate of unemployment where all the facets of the economy are working efficiently.

When the rate of unemployment equals the natural rate of unemployment the economy is said to be in equilibrium which means that market forces are effectively influencing the economy to perform t it's best. In the United States the natural rate or unemployment has been estimated to be between 4.5 -5%.

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<em>Hope this helps :)  </em>

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2 years ago
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