Natural rate of unemployment is the normal rate of unemployment toward which the economy gravitates.

Name: Natural rate of unemployment is the normal rate of unemployment toward which the economy gravitates.
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The natural rate of unemployment is the level of unemployment that is consistent with the economy being at full employment and experiencing steady inflation. It represents the sum of frictional and structural unemployment and does not include cyclical unemployment caused by economic downturns.

Natural Rate of Unemployment Is the Normal Rate of Unemployment