Unemployment compensation,by ________ layoffs at firms whose sales have declined,________ the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Unemployment compensation can make layoffs more palatable for firms experiencing a downturn, as it provides a safety net for laid-off workers. This can inadvertently encourage firms to lay off workers more readily than they might without such compensation, potentially raising the natural rate of unemployment.

Unemployment Compensation,by ________ Layoffs at Firms Whose Sales Have Declined,________

Unemployment Compensation,by Layoffs at Firms Whose Sales Have Declined,