The unemployment that occurs when the economy is producing its potential level of output.
The rate of unemployment which is associated with a constant (unchanging) rate of inflation.
The rate of joblessness that is consistent with stable inflation. An unemployment rate above its natural rate indicates the existence of worker surpluses, which is thought to hold down inflation. In contrast, an unemployment rate below its natural rate indicates worker shortages, which tends to push up inflation.
The rate of unemployment that can be sustained in the long run, and that is consistent with constant inflation.
the rate of unemployment at which the rate of inflation is zero
The natural rate of unemployment is the level of unemployment that still exists in the economy when the labour market is in equilibrium. This will usually be equivalent to the level of voluntary unemployment as at equilibrium everyone who wants a job has got one. Friedman argued that the only way to reduce the natural rate would be to use supply-side policies.
in economic theory, the rate of unemployment which corresponds to optimal output and does not cause any inflation.
The rate of unemployment that would exist when the economy is operating at full capacity. This will usually be equivalent to the level of voluntary unemployment as at equilibrium everyone who wants a job has got one.
The natural rate of unemployment is the unemployment rate when the economy is at full employment. There is no cyclical unemployment, all unemployment is frictional and structural.
The lowest rate of unemployment that can occur before the scarcity of qualified workers will begin to boost wage growth and inflation. The core rate is best thought of as the percentage of the labour force that is either frictionally or structurally unemployed.
The rate of unemployment attainable without stimulating an increase in the inflation rate.
