The natural rate of unemployment when seasonally adjusted includes
A) frictional and structural unemployment but not cyclical.
B) frictional and cyclical unemployment but not structural.
C) frictional unemployment only.
D) cyclical and structural unemployment but not frictional.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the rate at which the economy is experiencing neither expansionary nor contractionary pressures. It includes frictional and structural unemployment but not cyclical unemployment, as cyclical unemployment is a result of fluctuations in the business cycle. The natural rate of unemployment is also seasonally adjusted, which means it takes into account regular seasonal fluctuations in the labor market.

The Natural Rate of Unemployment When Seasonally Adjusted Includes