The natural rate of unemployment is best defined as A. the state of the economy when there is zero unemployment. B. the rate of unemployment when there is no frictional or cyclical unemployment. C. the rate of unemployment when there is no cyclical or structural unemployment. D. the rate of unemployment after all workers and employers have fully adjusted to all changes in the economy.
Natural rate of unemployment is the rate at which labor market is in equilibrium. In other words, it is the the rate of unemployment after all workers and employers have fully adjusted to all changes in the economy.
