a natural consequence of business cycles, so neither the governments nor the central banks shall not aim to stabilize unemployment. The market reacts optimally, and Pareto efficiency is assured.

a proof of the existence of frictions on the labour market.

unnecessary consequences of government failures, but governments can avoid large unemployment rates via timely fiscal expansion.

inflationary, in particular, if the deviation is persistent, due to pressures on the labour market leading to a higher wage-growth.