The natural rate of unemployment is made up of
A)frictional,cyclical,and structural unemployment.
B)frictional and cyclical unemployment.
C)cyclical and structural unemployment.
D)frictional and structural unemployment.
E)seasonal and structural unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is composed of frictional and structural unemployment. Cyclical unemployment is not included in the natural rate as it is caused by fluctuations in the business cycle. Seasonal unemployment is a specific type of frictional unemployment that occurs due to seasonal changes in demand, and it is not part of the natural rate.

The Natural Rate of Unemployment Is Made Up of