Policies that reduce the time it takes unemployed workers to find new jobs
A)can reduce both frictional unemployment and the natural rate of unemployment.
B)can reduce frictional unemployment,but they cannot reduce the natural rate of unemployment.
C)cannot reduce frictional unemployment,but they can reduce the natural rate of unemployment.
D)cannot reduce either frictional unemployment or the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Policies that reduce the time it takes unemployed workers to find new jobs can help decrease frictional unemployment as job seekers can find suitable jobs quickly. Moreover, as unemployed workers quickly return to work, the natural rate of unemployment, which is the minimum amount of unemployment that exists due to the characteristics of the labor market, can also decrease. Therefore, both frictional unemployment and the natural rate of unemployment can decrease through such policies.

Policies That Reduce the Time It Takes Unemployed Workers to Find