Question

The natural rate of unemployment
termed as the​

Answer 1

Many consider a 4% to 5% unemployment rate to be full employment and not particularly concerning. The natural rate of unemployment represents the lowest unemployment rate whereby inflation is stable or the unemployment rate that exists with non-accelerating inflation.

Answer 2

Explanation:

Solution :-

Today economists are much more skeptical of the implied correlation between strong economic activity and inflation, or between deflation and unemployment. Many consider a 4% to 5% unemployment rate to be full employment and not particularly concerning.

Natural rate of unemployment

The natural rate of unemployment represents the lowest unemployment rate whereby inflation is stable or the unemployment rate that exists with non-accelerating inflation. However, even today many economists disagree as to the particular level of unemployment that should be considered the natural rate of unemployment.