Which type of unemployment contributes to the natural rate of unemployment?

Question

Quizplus · Accepted Answer

All types of unemployment contribute to the natural rate of unemployment, as they reflect the ongoing churn in the labor market. Frictional unemployment occurs when workers are between jobs or searching for better opportunities, while structural unemployment results from longer-term changes in the economy, such as shifts in demand for certain types of labor. Real-wage unemployment occurs when wages are artificially kept above the market-clearing level, leading to excess supply of labor. Together, these types of unemployment comprise the natural rate of unemployment, which represents the level of unemployment that will persist even in a healthy economy, absent any cyclical fluctuations.

Which Type of Unemployment Contributes to the Natural Rate of Unemployment