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Which factor is named as influencing the natural rate of unemployment?
AStructural unemployment
BCyclical unemployment
CThe inflation rate
DThe exchange rate
Answer & Solution
Correct answer: A. Structural unemployment
1. The natural rate is not a single fixed number.
2. The natural rate is the unemployment that persists in a healthy economy.
3. Another factor that influences the natural rate is named directly.
4. That factor is the amount of structural unemployment.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 7 'Unemployment'_
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