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Discuss the Likely Impact of Each of the Following on the Unemployment

question 25

Essay

Discuss the likely impact of each of the following on the unemployment rate and on the natural rate of unemployment.
a. The length of time workers are eligible to receive employment insurance benefits is extended by 26 weeks.
b. The government decides to increase access to disability benefits.


Definitions:

Comparative Advantage

The ability of a country, individual, or firm to produce a particular good or service at a lower opportunity cost than others.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Opportunities Forgone

The benefits, profit, or value of something that must be given up to acquire or achieve something else.

Opportunity Cost

The outcome of forgoing possible advantages from other alternatives by choosing one option.

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