Chapter - 7 1. Formulate a general model of natural unemployment and explain - "Any policy aimed at lowering the natural rate of unemployment must either reduce the rate of job separation or increase the rate of job finding. Similarly, any policy that affects the rate of job separation or job finding also changes the natural rate of
Chapter - 7 1. Formulate a general model of natural unemployment and explain - "Any policy aimed at lowering the natural rate of unemployment must either reduce the rate of job separation or increase the rate of job finding. Similarly, any policy that affects the rate of job separation or job finding also changes the natural rate of
Chapter1: Making Economics Decisions
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Transcribed Image Text:Chapter - 7
1. Formulate a general model of natural unemployment and explain - "Any policy
aimed at lowering the natural rate of unemployment must either reduce the rate
of job separation or increase the rate of job finding. Similarly, any policy that
affects the rate of job separation or job finding also changes the natural rate of
unemployment."
2. What are the reasons behind frictional unemployment? Explain with proper
examples.
3. What are the reasons behind structural unemployment? Explain with proper
examples.
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