The natural unemployment rate is the unemployment rate that exists when there is no
A) cyclical unemployment.
B) frictional unemployment.
C) structural unemployment.
D) unnecessary unemployment.
E) cyclical or structural unemployment.
A
Economics
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In a "liquidity trap,"
A) the demand for money is infinite. B) the LM curve is a vertical line. C) the nominal interest rate on short-term assets is relatively high. D) money supply changes have a strong impact on interest rates.
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