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Discuss the likely impact of each of the following on the unemployment rate and on the...

Discuss the likely impact of each of the following on the unemployment rate and on the natural rate of unemployment.

  1. The length of time workers are eligible to receive employment insurance benefits is extended by 26 weeks.

  1. The government decides to increase access to disability benefits.
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Answer #1

A - Unemployment rate and natural rate of unemployement will decrease and people will decide to work for more durations than before. Hence the inemployment rate will fall and also natural rate of unemployement.

B - The unemployment and natural rate of unemployement will fall because the people who were not employed earlier will now work because of increase disability benefits . This will lead to decline in unemployement rate and natural rate of unemployment.

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