How does technology affect the natural rate of unemployment?

1 Answer
Jun 15, 2015

Technology will help decrease the natural rate of unemployment


-The natural rate of unemployment is the inevitable rate of unemployment in the economy
When technology is higher, therefore production will be more efficient which means that the producers will be able to produce the same amount with lower prices. (we are talking on a macro level so the technology increased for all the sectors in the economy)
So they will be able to afford more workers at the same cost which will mean the default general level of unemployment in the country decreased (AKA the natural rate of unemployment)