Macroeconomics 15th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 1

"When employees are dismissed from employment for reasons other than poor performance, unemployment benefits should replace 100 percent of their prior earnings while they are searching for a new job." Do you think this proposal is a good one Why or why not If instituted, would the policy influence how quickly laid-off workers would find new jobs What impact would the policy have on the unemployment rate