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In: Economics

Which type of unemployment leads to a natural rate of unemployment above zero? Multiple Choice Cyclical...

Which type of unemployment leads to a natural rate of unemployment above zero? Multiple Choice Cyclical unemployment Frictional unemployment The natural rate of unemployment is always zero. Unemployment of government workers

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Expert Solution

Option

2

Frictional unemployment

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Natural unemployment is a sum of Frictional unemployment plus structural unemployment.

These are called natural unemployment because unemployment is in the economy at any time as looking for different jobs and changing economic structure continues and that creates this unemployment.


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