The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.


Definition & Citations:

National economy’s unemployment level. Persists even when the labor market is in equilibrium. It is considered to be equivalent to the voluntary unemployment level because the thinking asserts that all those who want employment are already employed. Conceptually, a national unemployment rate was used by the US monetarist economist Milton Friedman to assert that in the long run neither fiscal policy nor monetary policy has any effect on the unemployment level. He proposed that they affect only the rate of inflation. Also refer to natural employment rate.


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