00:01
So here we're talking about unemployment and particularly natural unemployment.
00:03
This is just really a definition.
00:06
So there's not much i can give for you here.
00:10
The natural unemployment rate is unemployment when economy is at potential output.
00:28
This is equivalent to no cyclical unemployment because if the economy, is at potential output.
00:38
It means the economy is not running hot or cold, right? no cyclical unemployment.
00:44
And this is also the same as saying the unemployment that doesn't change inflation, right? that's another way of people describing the natural rate of unemployment.
01:01
Because when unemployment is very low, the labor market is very tight.
01:06
That tends to push up wages and prices.
01:08
When there's tons of unemployment, the labor market is very cold.
01:11
That tends to push down wages and prices.
01:14
So all these things are equivalent.
01:16
If we look at these, the answer is obviously a, right? no cyclical unemployment...
