NAIRU is an economist's term. It is the minimum amount of unemployed people required for capitalism to be able to function. If the number of unemployed goes below this rate then you get rapid wage inflation and and consumer price inflation. An easy way to look at it would be if all the unemployed people died tomorrow in 6 months time the same percentage of unemployed would come back. Other terms for NAIRU are "natural unemployment rate" and "full employment".
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