Principles of Macroeconomics / Unit 5 MAC 0421 short lesson, about 20 seconds
What Moves the Natural Rate
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The idea
The natural rate moves. It falls when job search gets easier or the workforce ages, and rises when mismatch grows or wages are left too high.
In practice
Online job listings lowered search costs; an older workforce changes jobs less often.
Where people slip
Policy moves it too, on both sides: how long benefits last, and how hard it is to hire and dismiss.
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