Subject : PRINCIPLES OF MACROECONOMICS Q1. Suppose the National Assembly passes legislation making it more difficult for firms to fire workers. (An example is a law requiring severance pay for fired...

Subject : PRINCIPLES OF MACROECONOMICS

Q1. Suppose the National Assembly passes legislation making it more difficult for firms to fire workers. (An example is a law requiring severance pay for fired workers.). If this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think that it is plausible that legislation would not affect the rate of job finding? Why or why not?