The natural rate of unemployment corresponds to what is sometimes called the full employment unemployment rate.

Question

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The natural rate of unemployment is the rate at which the labor market is in equilibrium, with all available job openings being filled and workers finding suitable employment. At this rate, there is no cyclical unemployment, only frictional and structural unemployment remain. It is often considered to be the rate of unemployment associated with full employment, as the economy is operating at its potential and there is little room for further reductions in unemployment without creating inflationary pressures.

The Natural Rate of Unemployment Corresponds to What Is Sometimes