The natural unemployment rate
A) falls with an increase in cyclical unemployment.
B) rises with an increase in structural unemployment.
C) rises with an increase in cyclical unemployment.
D) rises with a decrease in frictional unemployment.

Question

Quizplus · Accepted Answer

The natural unemployment rate rises with an increase in structural unemployment because structural unemployment is a component of the natural unemployment rate, reflecting mismatches between workers' skills and job requirements.

The Natural Unemployment Rate