The natural unemployment rate___________
A) is the unemployment rate at full employment.
B) is the unemployment rate when there is no structural unemployment.
C) occurs when the unemployment rate is 0 percent.
D) is the unemployment rate when there is only cyclical unemployment.

Question

Quizplus · Accepted Answer

The natural unemployment rate is the unemployment rate present when the economy is at full employment, meaning there is no cyclical unemployment. This rate includes some degree of structural and frictional unemployment, which are unavoidable in any economy.

The Natural Unemployment Rate___________