Question

The natural rate of unemployment (i) is the economy’s desirable level of unemployment. (ii) cannot be affected by economic policy. (iii) is typically constant over time.

a. (i) and (ii) only
b. (iii) only
c. (i), (ii), and (iii)
d. None of the above is correct.

Answer 1

d. None of the above is correct.

Step-by-step explanation:

The natural rate of unemployment is the rate which exists in an economy, that is because of unemployed people which is natural and accepted by the economy. But this is never desirable as no economy targets any rate, rather every economy wants it to be zero.

The unemployment rate can be minimized through economic policies and that it can also be increased because of poor economic policy. It do not remain constant at any level, as with change in each fiscal year, there is expected some change in rate of unemployment also.

Therefore, none of the statements above are true.