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
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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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