What does the natural unemployment rate include?
A) both frictional and structural unemployment
B) neither frictional nor structural unemployment
C) structural unemployment, but not frictional unemployment
D) frictional unemployment, but not structural unemployment

Question

Quizplus · Accepted Answer

The natural unemployment rate is composed of both frictional and structural unemployment. It is the level of unemployment that is unavoidable due to the constant fluctuations in the economy and the mismatch between job openings and worker's skills and preferences.

What Does the Natural Unemployment Rate Include