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Based on Your Understanding of the Labor Market Model Presented

question 26

Essay

Based on your understanding of the labor market model presented by Blanchard (i.e.,the WS and PS relations),explain what types of policies could be implemented to cause a reduction in the natural rate of unemployment.


Definitions:

Lease

A contractual arrangement in which one party agrees to rent property owned by another party for a specified period of time in exchange for payment.

Eminent Domain

The right of a government to expropriate private property for public use, with compensation provided to the owner.

Bequeath

To leave personal property to someone through a will.

Fair Compensation

Fair Compensation is equitable financial remuneration given to an employee for their services or to a party as reparation for loss, damage, or injury.

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