Asked by Matthew Medina on Jun 09, 2024
Verified
The natural rate of unemployment includes frictional,cyclical,and structural unemployment.
Natural Rate
The unemployment rate or level of activity achieved in an economy when it is at full employment, without accelerating inflation.
Unemployment
The situation in which individuals who are capable of working are actively seeking work but are unable to find employment.
Cyclical
Pertaining to fluctuations in economic activity occurring due to the natural business cycle, including expansions, peaks, recessions, and troughs.
- Differentiate between types of unemployment and their relation to the economy's potential output.
Verified Answer
RH
Rosalio HernandezJun 10, 2024
Final Answer :
False
Explanation :
The natural rate of unemployment includes only frictional and structural unemployment, not cyclical unemployment.
Learning Objectives
- Differentiate between types of unemployment and their relation to the economy's potential output.