The term NAIRU is an acronym for Non-Accelerating Inflation Rate of Unemployment. It is a concept in economic theory significant in the interplay of macroeconomics and microeconomics. This "full employment" unemployment rate is sometimes termed the "inflation-threshold unemployment rate": if actual unemployment falls below the NAIRU, the inflation rate is likely to rise quickly (accelerate). It is sometimes referred to as the "natural rate of unemployment" as well, although this term describes a… (More on Nairu)