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The remaining level of unemployment that occurs even when the economy is healthy is called the

Select the correct answer below:
a. division of labor
b. residual unemployment rate
c. natural rate of unemployment
d. unemployment rate

1 Answer

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Final answer:

The term describing unemployment that remains when the economy is healthy is the natural rate of unemployment. It encompasses frictional and structural unemployment and varies with economic, social, and political factors.

"The correct option is approximately option C"

Step-by-step explanation:

The term that represents the level of unemployment that persists in an otherwise healthy economy is known as the natural rate of unemployment. This concept is critical in understanding labor market dynamics and employment patterns, even during periods of economic growth. The natural rate of unemployment includes several components, such as frictional unemployment, which occurs when workers are temporarily out of work while transitioning between jobs, and structural unemployment, which happens when there is a mismatch between the skills workers possess and the demands of the job market.

It is essential to recognize that the natural rate of unemployment is not fixed and can vary based on a wide range of factors, including changes in technology, demographics, and government policies. These variables shape the labor market and influence both businesses' hiring practices and individuals' job-seeking behavior.

As such, the natural rate of unemployment is not the same across different countries due to varying economic, social, and political conditions. It can also fluctuate within the same country over time as these conditions change.

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