Chapter 12 Outline
IV. FULL EMPLOYMENT
A. The Full Employment Rate of Unemployment
	1. The full employment rate of unemployment is the frictional rate of unemployment plus the structural rate of unemployment.
	2. The full employment rate of unemployment is the lowest rate of unemployment consistent with a nonaccelerating inflation rate.
	3. The full employment rate of unemployment is sometimes referred to as the natural rate of unemployment.
	4. The full employment or natural rate of unemployment will change over time due to changes in the composition of the labor force and other factors.
	a. Increases in the number of teenagers and women entering the labor force in the 1970s caused the natural rate of unemployment to increase.

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