Question:Outline a basic model of the natural rate of unemployment.
Suppose that the government wants to...
Question
Outline a basic model of the natural rate of unemployment.
Suppose that the government wants to...
Outline a basic model of the natural rate of unemployment.
Suppose that the government wants to introduce the following
policy: on top of unemployment benefits the unemployed receive a
bonus for finding new jobs; the amount of the bonus declines with
the duration of search. In the context of the model you have
outlined explain the main effects of the proposed policy.