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Question : __________ unemployment refers to the lowest unemployment level a healthy economy can sustain without causing inflation.

Option 1: Structural

Option 2: Disguised

Option 3: Natural

Option 4: Frictional


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Natural


Solution : The correct answer is Natural.

Natural unemployment is the lowest unemployment level a healthy economy can sustain without causing inflation. It is the lowest unemployment rate that can be sustained without causing growth in wages or inflation to rise. A low unemployment rate indicates a strong economy and a high unemployment rate indicates a weak one.

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