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:

Oral Contraceptives

A type of birth control that is taken by mouth, including pills that prevent ovulation.

Estrogen

The principal female hormone, regulating reproductive functions and the development of secondary sex characteristics.

Minipill

A type of birth control pill that contains only progestin, which is less likely to cause some of the side effects associated with estrogen-containing pills.

Oral Pills

A form of medication taken by mouth, specifically used here to likely refer to contraceptives used to prevent pregnancy.