The natural rate of unemployment is the unemployment rate that would exist in the absence of _____.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the unemployment rate that would exist in the absence of cyclical unemployment, which is caused by fluctuations in the business cycle. The other types of unemployment- structural, frictional, and underemployment- are considered to be a normal part of the labor market and would still exist in the absence of cyclical unemployment. Educated unemployment is not a recognized category of unemployment.

The Natural Rate of Unemployment Is the Unemployment Rate That