Which one of the following is the correct concept of the natural rate of unemployment?
The natural rate of unemployment comprises frictional and structural unemployment. Frictional unemployment arises while workers move between jobs, and structural…
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Which one of the following is the correct concept of the natural rate of unemployment?
Answer and explanation
Correct answer A
The natural rate of unemployment comprises frictional and structural unemployment. Frictional unemployment arises while workers move between jobs, and structural unemployment reflects mismatches between workers and available jobs. Cyclical unemployment results from fluctuations in aggregate demand and is excluded.
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Tamil Nadu SET (TNSET)