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Investments glossary

Non-Accelerating Inflation Rate of Unemployment (NAIRU)


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I believe that the great Creator has put ores and oil on this earth to give us a breathing spell. As we exhaust them, we must be prepared to fall back on our farms, which is God\'s true storehouse and can never be exhausted. We can learn to synthesize material for every human need from things that grow.

— George Washington Carver

The non-accelerating inflation rate of unemployment (NAIRU) is the specific level of unemployment that is evident in an economy that does not cause inflation to increase. In other words, if unemployment is at the NAIRU level, inflation is constant. NAIRU often represents the equilibrium between the state of the economy and the labor market.


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