The natural rate of unemployment does NOT include which of the following?
A) cyclical unemployment
B) frictional unemployment
C) seasonal unemployment
D) all of the above

Question

Quizplus · Accepted Answer

The natural rate of unemployment represents the unemployment rate that exists when the economy is operating at full potential and there is no cyclical unemployment. Therefore, the natural rate of unemployment does not include cyclical unemployment, but it does include frictional and seasonal unemployment. So, choice A is incorrect, while choices B, C, and D are true in regards with the question.

The Natural Rate of Unemployment Does NOT Include Which of the Following