Last night's debate, inspired a couple of econ 101 review questions.
4. The non accelerating inflation rate of unemployment is:
a. the natural rate of unemployment
b. the full employment line
c. long-run equilibrium
d. can vary over time
e. all are correct
5. Structural unemployment is:
a. obsolete skills
b. equal to cyclical unemployment minus frictional unemployment
c. related to job search
e. non existent
The answers are: e and a. Here's a fact. When I post daily review questions, readership falls dramatically. I think that structural unemployment is the reason behind the 9.1% unemployment rate. All of the politicians can talk about job creation, but there's nothing they can do about it.