Suppose that the government provides more job training programs and job

search services so as to help workers

Question

Suppose that the government provides more job training programs and job search services so as to help workers

improve productivity and find jobs.

a.) What will be the effect on the natural unemployment rate? How does this affect the expectations-augmented Phillips curve and the long-run Phillips curve?

b.) Do you think that continuous expansionary monetary policy can have the same effects as in your answer to (a)? Explain your answer.

Macroeconomics