The natural rate of unemployment

Question

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The natural rate of unemployment is the sum of frictional and structural unemployment, as these are considered to be the "natural" or inherent types of unemployment in an economy. It does not include cyclical unemployment, which is caused by fluctuations in the business cycle. The natural rate of unemployment may increase during a recession, but this is due to an increase in cyclical unemployment, not the natural rate itself. It is also possible for the natural rate of unemployment to be equal to or greater than the full employment rate of unemployment, depending on the specific labor market conditions in an economy.

The Natural Rate of Unemployment