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The Natural Rate and NAIRU

The Natural Rate and NAIRU

Flow diagram showing frictional, structural, and seasonal unemployment forming the natural rate or NAIRU, which is linked to labour-market equilibrium and stable inflation; it also shows unemployment below the natural rate causing excess labour demand, faster wage rises, and accelerating inflation

The natural rate of unemployment is the unemployment remaining when the labour market is in equilibrium. There is neither excess demand nor excess supply of labour overall.

9.3.4 natural rate of unemployment Lesson

  1. Intl A Level
  2. /Economics
  3. /9.3.4 natural rate of unemployment

Step-by-step lessons on CIE Intl A Level Economics 9.3.4 natural rate of unemployment. Each one builds up to exam-style questions.

Lessons