Question

If we are in long-run equilibrium, what sort of unemployment will exist? Is this unemployment bad?

Answer 1

Question-in long-run equilibrium, what sort of unemployment will exist?

Answer- Basically there exists mainly 3 types of unemployment-

Frictional unemployment

Cyclical unemployment

Structural unemployment

Frictional and structural unemployment exist every time In the economy,but these 2 unemployment determine the natural rate of unemployment and in the long run there will be natural unemployment.

This sort of unemployment cannot be considered as bad because there will always be some level of unemployment even if the economy is at it full potential.People change jobs due to various reasons leading to unemployment.

Hope this helps!