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Category - Economics

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At any given time, there is a steady number unemployment figure which will be resistant to economic growth and government interventionist policies. What is this type of unemployment called?
  1. natural rate of unemployment
  2. consistent rate of unemployment
  3. dynamic rate of unemployment
  4. static rate of unemployment
Explanation
Answer: A - This type of unemployment is called natural rate of unemployment.

Key Takeaway: Natural rate of unemployment is a steady figure of unemployment that an economy normally experiences. This means that this unemployment will continue to exist even in the long run and despite economic growth or government interventionist policies.
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