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Author Question: What is the natural unemployment rate? What will be an ideal ... (Read 21 times)

TFauchery

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on: Jun 29, 2018
What is the natural unemployment rate?
 
  What will be an ideal response?

Question 2

In a closed economy with fixed or autonomous (non-income dependent) taxes, the balanced budget government purchases multiplier is negative.
 
  Indicate whether the statement is true or false


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IRincones

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The natural unemployment rate is the unemployment rate when no cyclical unemployment exists. That is, when all unemployment is frictional or structural then the unemployment rate equals the natural unemployment rate. Full employment occurs when there is no cyclical unemployment and the unemployment rate equals the natural unemployment rate.

Answer to Question 2

FALSE


TFauchery

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Reply 2 on: Jun 29, 2018
Gracias!

raili21

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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