Changes in Economic Policies Will Frequently Have an Impact on the Unemployment

question 9

Essay

Changes in economic policies will frequently have an impact on the unemployment rate. Explain whether each of the policy changes described is likely to: (1) affect frictional or structural unemployment and (2) increase or decrease the measured unemployment rate.
a. The government reduces the number of weeks of unemployment insurance that unemployed workers can receive.
b. The government raises the minimum wage.
c. The government increases spending on job-training programs.

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Definitions:

Induction

Ability of a chemical or a tissue to influence the development of another tissue.

Membrane Depolarizes

The process by which a cell membrane's voltage becomes less negative, leading to the possible firing of an action potential in neurons.

Sperm

Male gamete having a haploid number of chromosomes and the ability to fertilize an egg, the female gamete.

Egg

Also called an ovum; haploid cell that is usually fertilized by a sperm to form a diploid zygote.