Policies to substantially reduce the natural rate of unemployment should be targeted at:
A) the short-term unemployed.
B) the long-term unemployed
C) discouraged workers.
D) insiders and outsiders.

Question

Quizplus · Accepted Answer

Policies targeted towards the long-term unemployed have a greater potential to substantially reduce the natural rate of unemployment because the longer individuals are unemployed, the more their skills deteriorate, making it harder for them to find work in the future. Additionally, long-term unemployment can lead to other social issues such as poverty and social exclusion. Focusing on addressing the needs of the long-term unemployed can therefore have a positive impact on both the economy and society.

Policies to Substantially Reduce the Natural Rate of Unemployment Should