Natural unemployment rate quizlet
The Natural Rate of Unemployment Definition. The Natural Rate of Unemployment (NRU) is the rate of unemployment after the labor market is in equilibrium, when real wages have found their free-market level and when the aggregate supply of labor balanced with the aggregate demand for labor. The Natural Rate of Unemployment represents the rate of unemployment to which the economy naturally Best Answer: the answer is A. The natural rate of unemployment only includes frictional and structural unemployment, because those forms of unemployment are generally unavoidable; therefore, you an economy could never have an unemployment rate of zero. Natural vs. Actual Unemployment Rates This chart compares the CBO estimates of the natural rate of unemployment (Nairu) with the actual rate The actual rat… Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.