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Explain what the natural rate of unemployment is.
It is necessary here to include a solid explanation based on economic concepts. The natural rate of unemployment is the rate of unemployment which exists when the labour market has cleared - leaving voluntary employment comprised of seasonal, frictional and structural unemployment. It seems obvious that a basic explanation of employment and labour force is essential here.
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Non-Accelerating-Inflation Rate of Unemployment (NAIRU): This theory is a variant of neoclassical natural rate of unemployment. As in original natural rate theory, NAIRU advocates
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