Will each of the following increase, decrease, or have no effect on the natural rate of unemployment? Explain your answers. (Hint: I'm asking about the natural rate of unemployment, not the unemployment rate in general. Think about your answer in terms of frictional and structural unemployment.) (3)
a. The government increases unemployment benefits.
b. Unemployment rises due to the economy entering a recession.
c. Colleges develop successful methods of placing students in jobs immediately upon graduation