Macroeconomics: unemployment benefits | Economics homework help

At the height of the housing crisis in the US, in 2009-2010 the Government decided for a temporary extension of unemployment benefits to 99 weeks, from the standard six months.  

a) What do you think of this decision?  What are the positive and negative impacts of this decision to the society and the overall economy?

b) How would J.M. Keynes react to this extension?

c) How would a Classical Economist say about it?

Use as many economic principles (from the textbook and other sources) as you can in answering the questions.

As a guideline, each of the 10 points will be derived from the following:

  1. Post your answer (400-500 words) to the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief “yes, I agree” or “no, I do not agree” postings are not adequate posts
  2. Write in correct grammar; any errors will translate to a deduction in points.
  3. Check for the spelling; any errors will deduct points.
  4. Your responses must be substantive that include your own thoughts, supported with research (at least two external sources other than textbook, and you must quote these sources).
  5. You get one point when you respond to one of your classmates’ posts, also with substantive comments (100-200 words).
  6. One more point when you respond to another classmate’s post (100-200 words).
  7. One point for collaboration.  It is intended that your involvement in discussions be of a collaborative nature. Collaboration spirit is quite different from confrontation.
  8. Deadline: due date for each DQ will be on Monday night 11.55pm, but you are free to make your comments prior to Monday night.  One point will be deducted for each day of late submission.
  9. Creativity: offer a creative solutions or ideas or impact on other fields, such as: environmental impact, in addition to the obvious socio-economic impacts of each topic.
  10. Offer a future recommendation or alternative options for the future with regard to the topic in question.
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