If unemployment is at the natural rate, then there
A) is no cyclical unemployment.
B) will be only cyclical unemployment.
C) is no frictional unemployment.
D) will be cyclical and frictional unemployment but not structural unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment includes only structural and frictional unemployment, so if the actual unemployment rate is equal to the natural rate, there is no cyclical unemployment.

If Unemployment Is at the Natural Rate, Then There