The natural rate of unemployment is the estimated rate of unemployment that would prevail when ________ unemployment is zero.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the estimated rate of unemployment that would prevail when cyclical unemployment, which is associated with economic downturns or recessions, is zero. This concept assumes that even in a healthy economy, there will always be some level of frictional and structural unemployment.

The Natural Rate of Unemployment Is the Estimated Rate of Unemployment