Explain me this thanks sir **Impact of Government Actions on the Natural Rate of Unemployment****Question:** What happens to the natural rate of unemployment in response to the following event? Explain.**Event 1:** The government cuts unemployment benefits**Explanation:**When the government reduces unemployment benefits, it can potentially influence the natural rate of unemployment. This change may lower the natural rate of unemployment because decreased benefits provide less of a financial cushion for the unemployed, thereby incentivizing them to find work more quickly. The reduced support may push individuals to accept job offers more readily, even if the positions are less than ideal or come with lower wages than previously desired. Consequently, this increased urgency to re-enter the workforce can decrease the duration of unemployment spells and reduce the overall natural rate of unemployment.

When the government cuts unemployment benefits, it is able to have an impact on the natural rate of…

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what happens to the natural rate of unemployment events? Explain 1. the government cuts unemployment benefits in response to the following

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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