Which type of unemployment contributes to the natural rate of unemployment?

Question

Quizplus · Accepted Answer

Real-wage unemployment, also known as structural unemployment, is a type of unemployment that contributes to the natural rate of unemployment. This occurs when the wage rate is above the market equilibrium, resulting in a surplus of labor supply and a shortage of demand, causing some workers to be unemployed for a longer time. Meanwhile, cyclical unemployment is a type of unemployment that occurs due to business cycle fluctuations, and it is not considered part of the natural rate of unemployment. Unemployment of government workers is not necessarily a type of unemployment, as there is no assumption that all government workers are employed, and therefore, it is not a contributor to the natural rate of unemployment.

Which Type of Unemployment Contributes to the Natural Rate of Unemployment