The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Question

Quizplus · Accepted Answer

The Natural Rate of Unemployment (NRU) is the unemployment rate that exists when the labor market is in equilibrium and there is no cyclical unemployment. It is composed of both frictional and structural unemployment, as these types of unemployment are considered "natural" and not caused by changes in the business cycle.

The Natural Rate of Unemployment Consists of Frictional Unemployment Plus