The NAIRU is the:
A) North American institutional rate of unemployment.
B) natural aggregate investment return on utilization.
C) nonaccelerating inflation rate of unemployment.
D) normal American inelastic rate of unemployment.

Question

Quizplus · Accepted Answer

NAIRU stands for nonaccelerating inflation rate of unemployment. It represents the equilibrium rate of unemployment at which inflation remains stable or constant, without accelerating or decelerating. In other words, it is the rate of unemployment below which inflation tends to rise and above which inflation tends to fall. This concept is important for policymakers when they set monetary policy and target inflation rates.

The NAIRU Is The