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 it cannot reduce the natural rate of unemployment.
C)cannot reduce frictional unemployment, but it 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, such as job search assistance programs and unemployment insurance, can help reduce the amount of time it takes for workers to transition between jobs, which can reduce both frictional unemployment and the natural rate of unemployment.

Policies That Reduce the Time It Takes Unemployed Workers to Find