Question

At the economy's natural rate of unemployment, t(A) the economy is fully employed.(B) there is only a relatively small amount of cyclical unemployment.(C) only frictional unemployment exists.

Answer 1

Answer:

The correct answer is (C) only frictional unemployment exists.

Explanation:

The unemployment rate is considered natural and refers to this term in a certain way because there are workers who change jobs for professional aspirations or for the improvement of the quality of life, due to its proximity to the new workplace and the remoteness of the previous one. Even when there is full employment there are certain unemployed people, it is what is known as frictional unemployment, since workers need time to find the right job.