Asked by Hannah Neighbors on Jul 17, 2024
Verified
An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.
Natural Rate
The equilibrium rate of unemployment or interest when the economy is operating at a full capacity without short-term fluctuations.
- Acquire an understanding of the natural rate of unemployment and the concept of cyclical unemployment.
Verified Answer
BR
Bailey RatliffJul 21, 2024
Final Answer :
True
Explanation :
The natural rate of unemployment is the level of unemployment consistent with a stable rate of inflation. It represents the amount of unemployment that exists when the economy is at full employment, including frictional and structural unemployment but excluding cyclical unemployment.
Learning Objectives
- Acquire an understanding of the natural rate of unemployment and the concept of cyclical unemployment.