What natural rate of unemployment
The concept of the natural rate of unemployment is central to policy making because it indicates the capability of an economy to increase the growth of Over the long run, ral rate of unemployment. Frictional and Structural Un- employment. One component. Unemployment Rates of the natural rate is " frictional However, the natural rate theory has proven to be a poor guide for policy making over the last 10 years. Unemployment in 2000 fell two percentage points below