The natural unemployment rate__________
A) rises with a decrease in frictional unemployment.
B) falls with an increase in cyclical unemployment.
C) rises with an increase in structural unemployment.
D) rises with an increase in cyclical unemployment.

Question

Quizplus · Accepted Answer

The natural unemployment rate is the combination of frictional and structural unemployment. Therefore, any increase in structural unemployment would lead to an increase in the natural unemployment rate.

The Natural Unemployment Rate__________