The natural rate of unemploymentA) is constant over time.B) varies over time, but can't be affected by government policies.C) is the unemployment rate that the economy tends to move to in the long run.D) depends on the rate at which the Fed increases the money supply.

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Kaylee Krehbiel · Accepted Answer

Final Answer : C, Explanation :  The natural rate of unemployment is the level of unemployment that the economy tends to move towards in the long run, reflecting the long-term levels of frictional and structural unemployment in the economy. It is not constant over time, can be influenced by government policies, and is not directly dependent on the rate at which the Federal Reserve increases the money supply.

The natural rate of unemployment

A) is constant over time.
B) varies over time, but can't be affected by government policies.
C) is the unemployment rate that the economy tends to move to in the long run.
D) depends on the rate at which the Fed increases the money supply.

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