Suppose that the rate of job separation is 5% and the job-finding rate is 40%. The natural rate of unemployment is %. (Enter your response as a percent rounded to one decimal place.) If the...

Extracted text: Suppose that the rate of job separation is 5% and the job-finding rate is 40%. The natural rate of unemployment is %. (Enter your response as a percent rounded to one decimal place.) If the job-finding rate doubles, the new natural rate of unemployment is %. (Enter your response as a percent rounded to one decimal place.) Return to the original scenario. If the job-separation rate is cut in half, the new natural rate of unemployment is %. (Enter your response as a percent rounded to one decimal place.) Which had more impact, a doubling of the job-finding rate or a halving of the job-separation rate? With respect to government policy aimed at reducing the economy's natural rate of unemployment, an implication of the preceding is that efforts should A. always emphasize increasing the job-finding rate. B. either target the variable (job-finding rate or job-separation rate) that is easier (more cost effective) to alter, or target some combination of the two. C. minimize the job-separation rate and maximize the job-finding rate such that the natural rate of unemployment approaches zero percent. D. always emphasize reducing the job-separation rate.