Conventional wisdom is that most of the natural rate of unemployment is due to:

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the level of unemployment that occurs when the labor market is in equilibrium and there is no cyclical unemployment. Frictional unemployment refers to the unemployment that arises from people entering and leaving the labor force or from the time needed for workers to match with available jobs. It is a normal part of a dynamic economy and therefore makes up the majority of the natural rate of unemployment.

Conventional Wisdom Is That Most of the Natural Rate of Unemployment