Economics: Private and Public Choice
Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 8, Problem 5CQ
To determine

Identify the nature of the natural rate of unemployment and explain the relationship between full employment and the natural rate of unemployment.

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What is meant by the full employment or the natural rate of unemployment? Which type of unemployment exists at the natural rate?
Under what condition would an increase in the unemployment rate be a positive sign?
When the economy is at full employment, will the unemployment rate be 0%? Explain briefly When the unemployment rate equals the natural rate of unemployment, what kinds of unemployment will continue to exist.
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