1.1. Suppose that the government institutes a program to help unemployed workers learn new skills, find new...

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1.1. Suppose that the government institutes a program to help unemployed workers learn new skills, find new jobs, and relocate as necessary to take the new jobs.

a. If this program reduces structural unemployment, what is the effect on the expectations-augmented Phillips curve and the long-run Phillips curve?

b. The government program is expensive, and critics argue that a cheaper way to cut unemployment would be by monetary expansion. Comment.

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Macroeconomics

ISBN: 9780134896441

10th Edition

Authors: Andrew Abel, Ben Bernanke, Dean Croushore

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