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Rate of job separation without affecting the rate of job

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Reference no: EM132066098

Suppose that Govt. passes legislation making it more difficult for firms to fire workers. (An example is a law requiring severance pay for fired workers.) If this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think it is plausible that the legislation would not affect the rate of job finding? Why or why not?

Reference no: EM132066098

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