The natural unemployment rate
A) is the same from year to year.
B) is greater than the actual rate of unemployment.
C) is the unemployment rate when there is no cyclical unemployment.
D) equals zero.

Question

Quizplus · Accepted Answer

The natural unemployment rate is the unemployment rate when the economy is at full employment, meaning there is no cyclical unemployment but may still include frictional and structural unemployment. It is not constant year to year, does not necessarily exceed the actual unemployment rate, and is not zero.

The Natural Unemployment Rate