If a worker was miscategorized as structurally unemployed when he was really frictionally unemployed, that would not change the natural rate of unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the rate at which the economy is in equilibrium, with no cyclical unemployment but including frictional and structural unemployment. Miscategorizing a worker as structurally unemployed rather than frictionally unemployed may affect the individual worker, but it would not change the overall natural rate of unemployment in the economy.

If a Worker Was Miscategorized as Structurally Unemployed When He