Which of the Following Statements Is True About the Natural

Multiple Choice

Which of the following statements is true about the natural rate of unemployment?

A) The actual unemployment rate can never be above the natural rate.
B) The actual unemployment rate can never be at the natural rate.
C) The natural rate of unemployment consists of both cyclical and structural unemployment.
D) Sometimes the actual unemployment rate is below the natural rate.
E) The natural rate of unemployment consists of both cyclical and frictional unemployment.