Asked by Jaseena Chanelle on May 30, 2024

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What is meant by the natural rate of unemployment?

Natural Rate

A concept in economics referring to the level of unemployment at which there is no cyclical or deficient-demand unemployment. It represents a balance between the supply of labor and job vacancies, considering that some frictional and structural unemployment is inevitable.

Unemployment

The situation in which individuals who are capable of working and are seeking employment are unable to find work.

  • Explain the natural rate of unemployment and its significance in economic theory.
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BG
Brandon GutiiJun 03, 2024
Final Answer :
It is the rate of unemployment that the economy moves to in the long run.