The natural unemployment rate is the rate of _____ unemployment plus the rate of _____ unemployment.

Question

Quizplus · Accepted Answer

The natural unemployment rate consists of two types of unemployment - structural unemployment (which arises due to changes in the structure of the economy, such as technological advancements or changes in consumer preferences) and frictional unemployment (which arises due to natural turnover in the labor market, such as workers quitting their jobs to find better opportunities or recent graduates searching for their first jobs). Cyclical unemployment refers to the unemployment that occurs as a result of fluctuations in the business cycle, and is not considered part of the natural rate of unemployment.

The Natural Unemployment Rate Is the Rate of _____ Unemployment