What natural rate of
Concept introduction:
Labor Force: Labor force refers to all those people who are either currently employed or are actively looking for employment.
Unemployment Rate: Unemployment rate refers to the percentage of people in the labor force who are unemployed.
Natural Rate of Unemployment (NRU): NRU measures, in percentage terms, the voluntary unemployment that exists in an economy when all those who are physically and mentally fit to work and are willing to work at the going wage rate are able to find employment. It arises due to frictional and structural factors in an economy.
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
Mylab Economics With Pearson Etext -- Access Card -- For Economics Today: The Macro View
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education