The U.S. unemployment rate typically hovers around 5 percent, give or take a point, when the economy is healthy, while many European economies have only dropped to about 10 percent even in good years. What is this baseline, year-in and year-out level of unemployment called?

1. The natural rate of unemployment is the baseline level that persists even when the economy is otherwise healthy. 2. It is determined by how well market and government institutions match workers to employers, and it differs across economies. 3. Cyclical unemployment is the separate, short-run component that bounces up and down with the business cycle. 4. Frictional inflation and structural GDP are not the terms defined this way here. _Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 10 "The Aggregate Demand/Aggregate Supply Model", section 10.5 | How the AD/AS Model Incorporates Growth, Unemployment, and Inflation_