The natural unemployment rate is likely to be lower when the economy is growing more rapidly.

Question

Quizplus · Accepted Answer

The natural unemployment rate is primarily determined by the structure of the labor market and the economy, such as the match between workers' skills and job requirements, rather than the pace of economic growth. Rapid growth can temporarily lower actual unemployment below the natural rate, but it doesn't necessarily lower the natural rate itself.

The Natural Unemployment Rate Is Likely to Be Lower When