An economy’s natural rate of unemployment is the a. economy’s long-run target level of unemployment. b. amount of unemployment that the economy normally experiences. c. lowest rate of unemployment the economy can achieve. d. All of the above are correct.
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An economy’s natural rate of a. economy’s long-run target level of unemployment. b. amount of unemployment that the economy normally experiences. c. lowest rate of unemployment the economy can achieve. d. All of the above are correct. |
The natural rate(e) of unemployment is the least level that a solid/healthy economy can sustain without making inflation. In such kind of economy, labourers are continually travelling every which way, searching for better positions. Until they secure that new position, this jobless status considered is the natural rate(e) of unemployment. To financial experts, it's a blend of structural, frictional, and surplus unemployment. This is the lowest rate of unemployment an economy can achieve ever in the economy.
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