Natural unemployment equals the sum of

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Natural unemployment is the unemployment rate that exists in a healthy and growing economy with normal turnover and job transitions. Frictional unemployment refers to people who are unemployed because they are in between jobs or are searching for new ones. Structural unemployment is due to changes in the structure of the industry or economy, such as technological advancements or globalization. Cyclical unemployment, on the other hand, is caused by downturns in the business cycle. Therefore, natural unemployment is composed of frictional and structural unemployment only.

Natural Unemployment Equals the Sum of