The natural rate of unemployment is the economist's notion of
A)full employment.
B)cyclical employment.
C)structural unemployment.
D)frictional unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment, sometimes called the Non-Accelerating Inflation Rate of Unemployment (NAIRU), is the rate of unemployment at which there is no cyclical or short-term unemployment. This means that it is the lowest achievable rate of unemployment in the long-run without causing inflationary pressures. It is considered to be equivalent to full employment, where all those who want to work can do so at the prevailing wage rate.

The Natural Rate of Unemployment Is the Economist's Notion of