The Natural Rate of Unemployment

Multiple Choice

The natural rate of unemployment

A) prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy.
B) prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock.
C) exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work.
D) exists only during periods of recession or depression in the economy.