The natural rate of unemployment is the rate at which inflation equals expected inflation, resulting in zero price pressures in the economy.

Question

Quizplus · Accepted Answer

This is the definition of the natural rate of unemployment, also known as the non-accelerating inflation rate of unemployment (NAIRU). It suggests that any deviation from this rate will result in either inflationary or deflationary pressures in the economy.

The Natural Rate of Unemployment Is the Rate at Which