Natural Rate of Unemployment

Natural Rate of Unemployment

Introduction

Natural rate of unemployment (natural rate of unemployment - u *) - this is a level at which full employment, labor, i.e. the most efficient and sustainable. This means that all the people who want to work and find a job. Natural rate of unemployment is therefore called the unemployment rate at full employment, and the volume of production, corresponding to the natural rate of unemployment is called the natural volume of production and natural output. Since the full-time labor force means that the economy there is only frictional and structural unemployment, the natural ...