Question

In the long run the unemployment rate equals:

A. zero.
B. the cyclical rate of unemployment.
C. the natural rate of unemployment.
D. the sum of the cyclical and natural rate of unemployment.

Answer 1

C. the natural rate of unemployment.

Step-by-step explanation:

This rate includes frictional and structural unemployment.

It represents the unemployment rate that exists when the quantity of labor demanded is equal to the quantity of labor supplied.