Question

The natural rate of unemployment is the rate of unemployment (a) that occurs when the money market is in equilibrium (b) that occurs when the markup of prices over costs is zero (c) where the markup of prices over costs is equal to its historical value (d) that occurs when both the goods and financial markets are in equilibrium

Answer 1

Answer:

E) none of the above.

Explanation:

• The natural rates of the unemployment exist in a growing and healthy economy and include the structural unemployment and not the cyclic unemployment.  

• The natural unemployment rates s determined by the country or economy supply-side and hence involves the labor market and the real wages. Reductions unemployment must occur through the structural policies made to the economy's supply side.