how might governments lower the natural rate of


How might governments lower the natural rate of unemployment?

An easy way to organise the answer is to separate possible solutions into two broad groups; interventionist and market (supply-side) solutions. Interventionism should not be limited to easy demand-management but include interventionist supply-side suggestions. Market solutions are firmly centred on monetarist/classical thinking, i.e. supply-side policies.

 

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Microeconomics: how might governments lower the natural rate of
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