Question

According to advocates of the​ long-run vertical Phillips​ curve, the natural rate of unemployment is determined by A. frictional unemployment only. B. frictional and structural unemployment. C. ​frictional, structural, and cyclical unemployment. D. cyclical unemployment only.

Answer 1

B) frictional and structural unemployment

Step-by-step explanation:

Frictional unemployment is the result of being in between jobs. You are considered frictionally unemployed when you are looking for a new job.

Structural unemployment refers to a situation where jobs exist, but the applicants don't match the skills needed for the jobs. Structural unemployment is caused by external forces to the business cycle (e.g. low education levels).