When the actual unemployment rate is equal to the NAIRU,we can say that

Question

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When the actual unemployment rate is equal to the non-accelerating inflation rate of unemployment (NAIRU), the economy is considered to be at full employment, meaning all available labor resources are being utilized and there is no cyclical unemployment. It does not necessarily mean that frictional or structural unemployment are zero, but they are at their natural levels. Therefore, choice C is the best answer.

When the Actual Unemployment Rate Is Equal to the NAIRU,we