The natural rate of unemployment is determined by which of the following factors?

Select the correct answer below:
A. Companies expanding and contracting their labor forces
B. Public policies that affect labor markets
C. Social forces that shape the way individuals and companies make decisions about work
D. All of the above

The natural rate of unemployment is influenced by public policies affecting labor markets, companies adjusting their labor forces, and social forces shaping work decisions.

Explanation:

The natural rate of unemployment is determined by public policies that affect labor markets along with companies expanding and contracting their labor forces and the social forces shaping decisions about work. These three factors play a crucial role in defining the natural rate of unemployment in an economy. Public policies can impact how eager individuals are to seek work, influencing the overall unemployment rate.

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