Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
- Describe the natural rate of
unemployment
Expert Solution
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Step 1
The term unemployment refers to individuals who are willing to and are able to be employed, but do not have a job. They are actively seeking job as they are employable. Unemployment rate is calculated by dividing the number of unemployed individuals by the total number of individuals in the workforce. This unemployment rate is an indicator of unemployment in an economy.
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