The natural rate of unemployment is decomposed into ________ unemployment.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is primarily made up of two types of unemployment: structural and frictional. Structural unemployment occurs as a result of a mismatch in skills or changes in the economy, while frictional unemployment is the result of workers transitioning between jobs or entering the workforce. These types of unemployment are considered natural because they occur even in a healthy, growing economy with low levels of unemployment.

The Natural Rate of Unemployment Is Decomposed into ________ Unemployment