The natural rate of unemployment-also called full employment- means.

See below

Explanation:

Full employment is an ideal situation in the economy where anyone seeking work will be employed. The economy is at full employment when the unemployment rate is at or below its set target( 3.5% to 4.5 %). Full employment can only occur when the economy is booming, and a record number of skilled and unskilled labor are employed.

At full employment, the economy operates at an unemployment rate equal to the aggregate of the frictional and structural unemployment rates. Also called the natural rate of unemployment.

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