Question

24 mark for review
the natural rate of unemployment can be defined as the
a unemployment rate consistent with accelerating inflation
b unemployment rate of the least-skilled workers
c economys long-run equilibrium rate of unemployment
d labor force participation rate plus the unemployment rate
e labor force participation rate minus the unemployment rate

Explanation:

The natural rate of unemployment is the unemployment rate that exists when the economy is in long-run equilibrium, with no cyclical unemployment, only frictional and structural unemployment. Option A refers to the non-accelerating inflation rate of unemployment (NAIRU), which is related but not the core definition of the natural rate. Options B, D, and E describe unrelated labor market metrics or incorrect combinations.

Answer:

C. economy's long-run equilibrium rate of unemployment