The natural rate of unemployment is equal to zero when the economy is at full capacity.

Name: The natural rate of unemployment is equal to zero when the economy is at full capacity.
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The natural rate of unemployment represents the rate of unemployment that exists even when the economy is at full capacity. It is influenced by structural, frictional, and other non-cyclical factors and is typically estimated to be between 4-6% in most developed economies.

The Natural Rate of Unemployment Is Equal to Zero When