The Canadian government recently announced its plan to modify the employment insurance (EI) program, generating a great
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The Canadian government recently announced its plan to modify the employment insurance (EI) program, generating a great deal of debate over the appropriate level of generosity for EI.
a. Explain what problem can be caused by having an EI system that is too generous.
b. Explain what problem can be caused by having an EI system that is not generous enough.
c. If EI generosity were reduced and the NAIRU declined as a result, is this necessarily a desirable outcome?
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