Consider Canada's employment insurance (EI)program,which provides benefits to eligible unemployed workers.If the program is designed such that benefits are more generous in regions with higher rates of unemployment,then we can expect that

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By providing more generous benefits in regions with higher unemployment rates, the EI program may create a disincentive for unemployed workers to seek employment opportunities that may not offer similar benefits. This can contribute to higher levels of structural unemployment and an overall higher NAIRU.

Consider Canada's Employment Insurance (EI)program,which Provides Benefits to Eligible Unemployed