21) Suppose the separation rate is 3% and the finding rate is 24%.
a. What is the natural rate of unemployment?
b. If the separation rate remains at 3% and finding rate doubles, what is the new natural rate of unemployment?
c. If the separation rate is cut in half and the finding rate remains at 24%, what is the new natural rate of unemployment?
d. Which has more impact: a doubling of the finding rate or a halving of the separation rate?
22) What factors can cause the natural rate of unemployment to change?
23) Discuss the likely impact of each of the following on the unemployment rate and on the natural rate of unemployment.:
a. The length of time workers are eligible to receive unemployment benefits is extended by 26 weeks.
b. The government passes a law which increases the age of eligibility to collect Social Security benefits.
c. The government decides to increase access to Social Security disability benefits.
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