Increases in the generosity (percentage of wages replaced) and duration of unemployment benefits are associated with increases
Question:
a. Why do governments provide unemployment benefits if they may increase unemployment rates?
b. Among the measures passed by the U.S. government during the 2007–2009 recession were temporary increases in the duration of unemployment benefits. Would you expect these measures to increase the natural rate?
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a The goal of government in these ca...View the full answer
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Related Book For 
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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