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What unemployment rate should we be aiming for?

Is there such a thing as an unemployment rate that is too low?

Unemployment dropping to 7.5 percent has got to be the economic story of the month. Still, you may be saying, if only we could get that down to zero. But the dismal scientists beg to differ — they say zero unemployment would actually be a problem. So what then is the goal?

 

Marketplace’s economics correspondent Chris Farrell joins Morning Report host David Bracaccio to explain.

 

 

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What unemployment rate should we be aiming for?