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3 years ago

The natural rate of unemployment will help determine

Business

2 answers:

Bad White [126]3 years ago

5 0

The natural rate of unemployment helps in achieving the position of the long-run AS curve.

Further explanation:

Brief about the natural rate of unemployment:

The natural rate of unemployment is the threshold of unemployment that exists even when the economy has allocated all the resources including human capital efficiently. No economy has zero level of unemployment over a time period, there is some minimum level of unemployment prevails in an economy which has allocated resources efficiently. It is the summation of frictional unemployment with structural unemployment. Some people leave their jobs and go to some other town, and then if they are without any job,they would be considered as frictionally unemployed. Whereas, when some people are displaced by technology or unemployed currently because of learning a new skill or technology, then this is called structurally unemployed.

Long-run AS:

The long-run AS curve is positioned at the level of the full-employment output level. A full employment output level is an output level that corresponds to the natural rate of unemployment. A natural rate of unemployment depicts the maximum level of output that can be achieved in the long run when all the resources are efficiently utilized except these natural unemployed people.

Therefore, the natural rate of unemployment helps in achieving the position of the long-run AS curve.

Learn more:

1. Learn more about unemployment due to a lack of skills.

brainly.com/question/11030926

2. Learn more about the inflation rate and the economy.

brainly.com/question/3310349

3. Learn more about supply.

brainly.com/question/8702937

Answer details:

Grade: Senior school

Subject: Economics

Chapter: Aggregate demand-Aggregate supply

Keywords: the natural rate, unemployment, will determine, classical AS, long-run AS curve, no economy has zero level of unemployment over a time period, natural rate of unemployment is the combination of frictional and structural unemployment, position of long-run AS curve, natural unemployed people.

kotykmax [81]3 years ago

4 0

The point of the long-run aggregate supply curve.

I hope this helps!

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