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What is the unemployment rate at the equilibrium wage?

What is the unemployment rate at the equilibrium wage?
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Answer #1

Unemployment at the equilibrium wage level is often called frictional unemployment rate.

The term FRICTIONAL UNEMPLOYMENT refers to the unemployment that is associated with the normal turnover of labour. People leave jobs for many reasons, and they take time to find new jobs; old persons leave the labour force and young persons enter it, but often new workers do not fill the jobs vacated by those who leave. Inevitably all of this movement takes time and gives rise to a pool of persons who are 'frictionally' unemployed' while in the course of finding new jobs.

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