Natural Rate of Unemployment ■ Natural rate of unemployment: the average rate of unemployment around which the economy fluctuates. -In a recession,the actual unemployment rate rises above the natural rate. -In a boom,the actual unemployment rate falls below the natural rate. CHAPTER 6 Unemployment § Natural rate of unemployment: the average rate of unemployment around which the economy fluctuates. § In a recession, the actual unemployment rate rises above the natural rate. § In a boom, the actual unemployment rate falls below the natural rate. 1