Over time,the actual unemployment rate varies around the natural rate.

Question

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The natural rate of unemployment is the rate of unemployment that exists when the economy is at full employment, with no cyclical unemployment. However, actual unemployment can vary from this rate due to various factors such as economic conditions, changes in demographics, and government policies. Therefore, the actual unemployment rate can be both above or below the natural rate over time.

Over Time,the Actual Unemployment Rate Varies Around the Natural Rate