Concept explainers
Whether the additional cyclical, frictional, or structural
Concept introduction:
Natural Rate of Unemployment -
It is the rate of unemployment that the economy reaches in the long run. When people switch jobs, there is a time lag and the unemployment of people during that time lag is called Natural rate of Unemployment. It is the combination of structural and frictional unemployment.
Actual Rate of Unemployment - It is the rate of unemployment of those people who want to work at the existing wage rate but are not able to find the work
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Mylab Economics With Pearson Etext -- Access Card -- For Economics Today: The Macro View
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