The natural rate of unemployment is that rate
A) below which the economy can never be.
B) corresponding to full-employment.
C) corresponding to a constant rate of inflation.
D) which is zero.
C
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A key reason why some nations show little or no growth is
A) overpopulation that overuses limited resources. B) too much private property not directed by the government. C) too much international trade so that all economic growth spills over to foreigners. D) patents in rich nations that keep technology only for the rich. E) lack of incentives to undertake actions toward growth.
Tight monetary policy and easy fiscal policy lead to
A) high real interest rates. B) low real interest rates. C) roughly unchanged real interest rates. D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.