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5 November, 23:26

The natural rate of employment is achieved when:

it is above the actual rate of unemployment.

the actual rate of unemployment is zero.

the quantity of labor supplied is equal to the quantity of labor demanded.

there is no cyclical unemployment.

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Answers (1)
  1. 5 November, 23:39
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    The correct answer is letter "D": there is no cyclical unemployment.

    Explanation:

    Natural unemployment is also described as the lowest unemployment rate which an economy can attain. It is natural because it is triggered by things other than a poor economy. For example, one aspect of natural unemployment is frictional unemployment induced by circumstances such as new students starting their work quest, people leaving their job to move to another city or people leaving their job to look for another.

    Unemployment that is not considered to be natural is called cyclical, institutional or policy-based unemployment. Thus, when there is natural unemployment there is no cyclical, institutional or policy-based unemployment.
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