Final answer:
The natural rate of unemployment is the unemployment rate that would result from the combination of economic, social, and political factors that exist at a time assuming the economy was neither booming nor in recession.
Step-by-step explanation:
The natural rate of unemployment is the unemployment rate that would result from the combination of economic, social, and political factors that exist at a time assuming the economy was neither booming nor in recession. This rate is not a physical law of nature, but rather a result of various factors such as the usual pattern of companies expanding and contracting their workforces, social and economic forces that affect the labor market, and public policies that influence the eagerness of people to work or the willingness of businesses to hire.