The natural rate of unemployment is:

A) equal to the seasonal unemployment.
B) usually equal to 3 percent.
C) the unemployment rate when none of the work force is unemployed for more than six weeks.
D) the unemployment rate at which the economy is producing its potential GDP.
E) defined by the government.

Natural Rate

Often refers to the natural rate of unemployment where the labor market is in equilibrium, or the natural rate of interest that equates savings and investment.

Unemployment Rate

The segment of the labor population that is without employment and actively seeking a job.

Potential GDP

The maximum output an economy can achieve when utilizing all its resources efficiently, without causing inflation.