In 2012, the U.S. natural rate of unemployment was estimated to be about 5.5 percent, which at the time was below the actual rate of unemployment of about 8.1 percent.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is an estimate of the unemployment rate that would exist in an economy making full use of its productive resources. In 2012, the actual unemployment rate was higher than the natural rate, indicating that the economy was not at full employment.