danielpalos
Diamond Member
- Jan 24, 2015
- 73,961
- 5,055
that is your appeal to ignorance.Your "definition means nothing". The economic term and definition provides metrics.Once again a definition means nothing. Definitions only explain a word they do not prove the word refers to something real and the natural unemployment rate is not real.Are you appealing to ignorance of the definition anyone can find on the internet, as well?No there is not.Yes, there is and it is already defined. All you can do is refute the definition or appeal to ignorance of it.
As pointed out anything can be defined which does not make it real.
This idea is just a concept based on ignorance.
It is not an economic term it is merely a hypothetical term with zero metrics.
One hundred percent full employment is unattainable in a market economy over the long run. Such employment is actually undesirable, because a 0% long-run unemployment rate requires a completely inflexible labor market, where laborers are unable to simply quit their current job or leave to find a better one.
According to the general equilibrium model of economics, natural unemployment is equal to the level of unemployment of a labor market at perfect equilibrium. This is the difference between workers who want a job at the current wage rate and those who are willing and able to perform such work.
Under this definition of natural unemployment, it is possible for institutional factors, such as the minimum wage or high degrees of unionization, to increase the natural rate over the long run.
Natural Unemployment