Jobless recoveries prolong unemployment above the nonaccelerating inflation rate of unemployment.

Question

Quizplus · Accepted Answer

Jobless recoveries refer to periods of economic growth without a corresponding increase in employment. This means that even though the economy is improving, unemployment remains high. When this happens, it can be difficult for the unemployment rate to fall below the nonaccelerating inflation rate of unemployment (NAIRU), which is the level of unemployment below which inflation is expected to rise. Therefore, jobless recoveries can prolong unemployment above the NAIRU.

Jobless Recoveries Prolong Unemployment Above the Nonaccelerating Inflation Rate of Unemployment