Which unemployment rate do most economists consider to be acceptable? 0 percent 5 percent 10 percent 20 percent

Question

Riley Reilly

Business

19 March, 02:25

Which unemployment rate do most economists consider to be acceptable? 0 percent 5 percent 10 percent 20 percent

+3

Answers (1)

Know the Answer?

Clyde · Answer 1

The answer is b) 5 percent. Economists consider "full employment" to be lowest sustainable rate of employment, meaning the lowest rate to which unemployment can fall before labor shortages lead to wage increases and and therefore increases in the rate of inflation. Given historical trends, economists have settled on 5% to be the level of unemployment that represents "structural mismatch," or the fact that the remaining unemployed either don't have the skills employers are seeking or don't live in the parts of the country where those workers are being sought.