Which of the following is correct? The natural rate of unemployment
a. is a zero unemployment rate.
b. has been steady at 3 percent over the past decade.
c. is defined by Friedman as that rate of unemployment "in which everyone who wants a job can have a job."
d. is the unemployment rate that exists in the long-run.
e. None of the above
D
Economics
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Suppose potential GDP is $100 billion and the natural unemployment rate is 5 percent. If the unemployment rate is 6 percent, then according to Okun's Law real GDP is
A) $102 billion. B) $98 billion. C) $101 billion. D) $99 billion. E) $100 billion.
Economics
Most economists think that the economy's self-correcting mechanism is
a. relatively rapid. b. rapid in the short run and sluggish in the long run. c. sluggish in the short run and rapid in the long run. d. relatively sluggish.
Economics