The equilibrium unemployment rate is also known as the _____ unemployment rate.
A)structural
B)cyclical
C)frictional
D)long-run

Question

Quizplus · Accepted Answer

The equilibrium unemployment rate is also known as the long-run unemployment rate because it represents the level of unemployment when the economy is operating at its potential output in the long run, with no cyclical fluctuations. The structural unemployment rate refers to the unemployment that arises from a mismatch between the skills and qualifications of workers and the requirements of available jobs. The cyclical unemployment rate refers to the unemployment that occurs due to short-term fluctuations in the business cycle. The frictional unemployment rate refers to the unemployment that arises from the time it takes for workers to search for and find new jobs, due to information or geographical barriers.

The Equilibrium Unemployment Rate Is Also Known as the _____