Reducing the Natural Rate of Unemployment Requires Reducing the Rate

question 89

Essay

Reducing the natural rate of unemployment requires reducing the rate of job separation and increasing the rate of job finding.Explain at least one policy that will affect each of these aspects of the natural rate of unemployment.

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Definitions:

Futures Contracts

Standardized legal agreements to buy or sell something at a predetermined future date and price, typically used for commodities or financial instruments.

Forward Contracts

Non-standardized contracts between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Default Free

An investment that is considered to have no risk of failure to pay back principal or interest.

CGB Futures

Futures contracts based on Canadian Government Bonds, which allow investors to speculate on or hedge against future changes in the value of these bonds.