Attachment 30243

In which years was the unemployment rate equal to its natural rate?

would it be years 1, 4, and 5?

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- February 24th 2014, 05:13 PMmichellederzUnemployment equal to it's natural state - Graphing Help
Attachment 30243

In which years was the unemployment rate equal to its natural rate?

*would it be years 1, 4, and 5?* - February 24th 2014, 05:17 PMHallsofIvyRe: Unemployment equal to it's natural state - Graphing Help
You give graphs for "potential" and "actual" but it is impossible to tell what you mean by "natural" rate. Some

**defiitions**would be helpful. - February 24th 2014, 05:25 PMmichellederzRe: Unemployment equal to it's natural state - Graphing Help
- February 24th 2014, 06:02 PMromsekRe: Unemployment equal to it's natural state - Graphing Help
- February 26th 2014, 02:28 PMJeffMRe: Unemployment equal to it's natural state - Graphing Help
The "natural rate of unemployment" is a conceptual construct about long-term equilibrium. For a brief introduction, please see: Natural rate of unemployment - Wikipedia, the free encyclopedia

Measuring the rate operationally (if that can even be done) will presumably depend on a technical definition, and there may be more than one in the literature.

I am guessing, however, that the assumption behind this question is that unemployment is at its "natural rate" when the economy is producing at its average long-term potential. Whether that assumption has any empirical validity is a different question. See if there is anything in the text that seems consistent with that assumption. - March 22nd 2014, 07:42 AMmonim1Re: Unemployment equal to it's natural state - Graphing Help
I am confused about your question. In you graph which one is natural rate? It is not clear to me.