Emergency benefits to protect the "temporarily" unemployed from government mandated economic shutdowns in response to the Coronavirus pandemic were, for many, very generous as they provided them with a higher income than they had earned while working.

1. Why were these benefits so designed?
2. Although time limited, did they create incentive problems for both employers and employees?What were these incentive problems and how did they affect firm and worker behaviour?
3. Many in the EU suggest that short-time work programs are preferable.Provide an example of where they were implemented, their benefits and possible costs.
4. Will these policies slow economic adjustment to structural changes caused by the Coronavirus pandemic?Is this good or bad from the perspective of firms and workers today and from the perspective of firms and workers in the future?Why?