CH6SQ - Mankiw, Chapter 6 Study Questions 1. In the last 20...

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Mankiw, Chapter 6 Study Questions 1. In the last 20 years or so, the average unemployment rate in Canada has been higher than the average unemployment rate in the U.S. Referring to the model of the natural rate of unemployment developed in Chapter 5, explain in general terms why the natural rate of unemployment could be higher in one country than in another. 2. Suppose the United States Congress passes 2 laws. The first law increases the length of time unemployed workers receive unemployment insurance payments. The second law creates a national network of government-run employment agencies that provide assistance to unemployed workers in finding jobs. What will happen to the natural rate of unemployment in the U.S. as a result of these 2 laws being passed? Explain. 3. Chapter 6 argues that the rate of unemployment is positive even when an economy is operating at "full employment." Is this desirable? That is, is a zero rate of unemployment desirable in principle? Explain your answer. 4. Problems and Applications #3 on page 176 of the Mankiw textbook. 5.
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CH6SQ - Mankiw, Chapter 6 Study Questions 1. In the last 20...

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