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Natural Rate of Unemployment: Definition and Formula

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question 1 of 3

Economists describe an economy that is at the natural rate of unemployment as _____.

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1. Which of the following individuals is structurally unemployed?

2. When actual unemployment falls below the natural rate, that LIKELY results in _____.

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About This Quiz & Worksheet

Test your ability to calculate the natural rate of unemployment in this quiz/worksheet combo. Topics you will need to know in order to pass the quiz include unemployment and inflation rates.

Quiz & Worksheet Goals

This quiz/worksheet combo can help you assess your knowledge of:

  • The natural rate of unemployment
  • Result when the natural rate of unemployment is higher than actual employment
  • What economists believe about employment

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related natural rate of unemployment lesson
  • Information recall - access the knowledge you have gained regarding facts about the natural rate of unemployment
  • Problem solving- use acquired knowledge to show what economists believe about unemployment

Additional Learning

To learn more about the natural rate of unemployment, review the lesson on Formula for the Natural Rate of Unemployment. This lesson covers the following objectives:

  • Compare and contrast structurally unemployed and frictionally unemployed
  • Review the classical theory of unemployment
  • Identify the goals of fiscal policy
  • Understand the formula used to calculate the natural rate of unemployment
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