The natural unemployment rate is the result of

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The natural unemployment rate is the result of job search and job rationing, as there will always be some level of unemployment due to the time it takes for workers to find and match with appropriate job openings, as well as the ongoing process of firms restructuring and adjusting their workforce. Bad government policies (A) may affect unemployment levels, but do not directly determine the natural rate. Insufficient demand for labor (B) can contribute to cyclical unemployment, but not necessarily the natural rate. The Lucas wedge (D) and Okun gap (E) refer to specific concepts within macroeconomics that are not directly related to the natural unemployment rate.

The Natural Unemployment Rate Is the Result of