Question

Government policies directed at reducing frictional unemployment include:_______. 1. increasing the earned income credit. 2. making government part of the union–firm wage bargaining process. 3. abolishing minimum-wage laws. 4. making unemployment insurance 100 percent experience rated.

Answer 1

Option D

Government policies directed at reducing frictional unemployment include: making unemployment insurance 100 percent experience rated.

Step-by-step explanation:

The supply-side policies are applied to lessen frictional and structural unemployment, which are due to shortcomings in the labor market. Firstly, frictional unemployment is the stage throughout which inherent workers are hunting for or transitioning from one profession to different.

There are openings accessible, but the unemployment worker and the inherent employer are not coordinated furthermore. Governments can approve policies to strive to overcome frictional and structural unemployment. The government can allow comfortable amenities for intensification availability and versatility for composing unemployment insurance 100 percent experience-rated.