Unemployment is at its natural level if there is no:
A) unemployment.
B) frictional unemployment.
C) structural employment.
D) cyclical unemployment.

Question

Quizplus · Accepted Answer

The natural level of unemployment includes frictional and structural unemployment but not cyclical unemployment. Cyclical unemployment is associated with economic downturns, so when unemployment is at its natural level, it means the economy is not experiencing the ups and downs that cause cyclical unemployment.

Unemployment Is at Its Natural Level If There Is No