What determines the
rate of output?
The natural rate of unemployment refers to the minimum unemployment rate at which the economy is maintained even if there is no rise in inflation. It also represents the number of people who do not have willingness to work and have no jobs as well and neither have they actively searched for it.
The unemployment rate which cannot drop below the considered level is called as the natural rate of unemployment and it is determined by the non-accelerating inflation level that is if the economy remains in the same place at inflation, the unemployment level will not fall.
The determinants include the inflation and the number of people who do not get encouragement to work and earn money.
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