Question

Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. the policy will cause the natural rate of unemployment tofall , which will: shift the long-run aggregate supply curve to the left not affect the long-run aggregate supply curve shift the long-run aggregate supply curve to the right

Answer 1

Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. The policy will cause the natural rate of unemployment to fall, which will shift the long-run aggregate supply curve to the right.

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