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In the long run the unemployment rate equals:

A. zero.
B. the cyclical rate of unemployment.
C. the natural rate of unemployment.
D. the sum of the cyclical and natural rate of unemployment.

1 Answer

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Answer:

C. the natural rate of unemployment.

Step-by-step explanation:

This rate includes frictional and structural unemployment.

It represents the unemployment rate that exists when the quantity of labor demanded is equal to the quantity of labor supplied.

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