The natural rate of unemployment is defined as the rate of unemployment that
A) exists only during periods of recession or depression in the economy.
B) exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work.
C) prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy.
D) prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock.
C
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Suppose the economy of Catalania is experiencing a recession and policy makers decide to implement an expansionary monetary policy. It takes more than a year to implement the recommended policy measures. This is an example of a(n): a. liquidity trap
b. wage-price spiral. c. administrative lag. d. operational lag.
One World View article is titled "Glaring Inequalities." Of the countries listed, the greatest inequality in the distribution of income is likely to occur in
A. Canada. B. Namibia. C. Sweden. D. The United States.