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. The Natural Rate of Unemployment: a. What is the natural rate of unemployment? b. Does unemployment insurance decrease or increase the natural rate? c.

. The Natural Rate of Unemployment:

a. What is the natural rate of unemployment?

b. Does unemployment insurance decrease or increase the natural rate?

c. Suppose that the amount of money a person receives when they are on unemployment insurance increases. What effect would this have on labor supply? Graph the effect of this change in a labor market with upward sloping labor supply.

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