Question: Your professor is paid only nine months out of the
Your professor is paid only nine months out of the year (really!!). Suppose that she were fired each spring and rehired each fall and thereby eligible for unemployment insurance benefits. (After all, all those students going away for the summer creates economic hardship for your university!) Do you think that would affect her consumption smoothing over the year, relative to what she does right now, when she is not fired annually? Explain your answer.
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