AP Macroeconomics Question 405: Answer and Explanation
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4. When a nation is operating at the natural rate of unemployment,
- A. there is no cyclical unemployment.
- B. the inflation rate is zero.
- C. there is no structural unemployment.
- D. the nation is experiencing a recession.
- E. the unemployment rate is zero.
Correct Answer: A
A-At the natural rate of unemployment, there is frictional and structural unemployment, but no cyclical job loss.