What is the natural rate of unemployment, and what types of unemployment constitute the natural rate of unemployment?

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Joshua StredderLv10

29 Sep 2019

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Related questions

1. What is the relationship between LRAS and the natural rate of unemployment?

a. If the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 1/2%, and cyclical unemployment of 2%, what is the natural rate of unemployment? Where is the economy operating relative to LRAS?

b. What happens to the natural rate of unemployment and LRAS if structural unemployment rises 3% and everything else stays the same as in part a?

c. What happens to the natural rate of unemployment and LRAS if structural unemployment falls 1.5% and the other numbers are the same as part a?

redbadger988

"The natural rate of unemployment is equal to frictional unemployment plus structural unemployment". Explain the statement using the relationship between the natural rate of unemployment and frictional, cyclical and structural unemployment.

The natural unemployment rate is not zero because natural unemployment includes _______.

A. frictional and cyclical unemployment

B. cyclical and structural unemployment

C. frictional and structural unemployment

D. cyclical unemployment

E. discouraged workers