Question

Any policy aimed at lowering the natural rate of unemployment must either ______ the rate of job separation or ______ the rate of job finding. Group of answer choices reduce; increase increase; reduce reduce; reduce increase; increase

Answer 1

Reduce; Increase

Step-by-step explanation:

Unemployment is a macroeconomic problem that affects individuals most directly and severely. The natural rate of unemployment is the average rate of unemployment in the economy. A policy that increases the job-finding rate will decrease the natural rate of unemployment. A policy that decreases the job separation rate will decrease the natural rate of unemployment.

Job separation is the rate at which an employee leaves the organization.