Changes would affect the natural rate of unemployment

Reference no: EM13692477

Discuss briefly how each of the following changes would affect the natural rate of unemployment.

a. The economy enters a period of little structural change and all industries are growing at about the same rate.

b. Schools operate for the full year, so there are no students looking for summer work.

c. The Internet lists all the jobs available in the whole country, so it is easier for job seekers to locate potential job.

d. People who quit their jobs are drafted into low-wage community service jobs.

e. In addition to unemployment insurance, the unemployed receive a bonus for finding new jobs; the bonus is greater if the job is found in the first few weeks of search and declines with the duration of search.

Reference no: EM13692477

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