Natural unemployment is the
A) average of frictional,structural,and cyclical unemployment.
B) sum of frictional,structural,and cyclical unemployment.
C) sum of frictional and cyclical unemployment.
D) sum of structural and cyclical unemployment.
E) sum of structural and frictional unemployment.

Question

Quizplus · Accepted Answer

Natural unemployment refers to the sum of frictional and structural unemployment, as these types of unemployment are considered natural to a dynamic economy and are not caused by economic fluctuations. Cyclical unemployment is caused by economic downturns and is not considered natural or long-term unemployment. Therefore, the correct answer is E, which is the sum of structural and frictional unemployment.

Natural Unemployment Is the