What is the natural unemployment rate? What will be an ideal ...

[TFauchery]

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

[IRincones]

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]

Wow, this really help

[ghepp]

Thanks for the timely response, appreciate it