The natural rate of unemployment in an economy refers to the rate of unemployment that exists when

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only frictional and structural unemployment remain in the economy. The natural rate of unemployment, a concept associated with Milton Friedman, is the rate that persists even when the economy is at full employment, comprising only frictional and structural unemployment. It is not zero because some unemployment is always present due to job searching and skills misma

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A) the government has eliminated all forms of joblessness through fiscal policy

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B) only frictional and structural unemployment remain in the economy

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C) aggregate demand equals aggregate supply at the lowest possible price level

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D) cyclical unemployment is at its highest point during a recession

The natural rate of unemployment in an economy refers to the rate of unemployment that exists when

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