Question 1

Higher unemployment insurance benefits tend to increase unemployment because they

Accepted Answer

A)   reduce the opportunity cost of job search and, hence, increase the search time.
B)   increase the opportunity cost of job search and, hence, increase the search time.
C)   reduce the opportunity cost of job search and, hence, decrease the search time.
D)   increase the opportunity cost of job search and, hence, decrease the search time.

Question 2

During a sustained economic expansion,

Accepted Answer

A)   the rate of unemployment will generally fall and the employment/population ratio will generally rise.
B)   the rate of unemployment will generally rise and the employment/population ratio will generally fall.
C)   both the rate of unemployment and the employment/population ratio will generally decline.
D)   both the rate of unemployment and the employment/population ratio will generally rise.

Exam 8: Economic Fluctuations, Unemployment, and Inflation

Higher unemployment insurance benefits tend to increase unemployment because they

Correct Answer
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During a sustained economic expansion,

Correct Answer
verified

Exam 8: Economic Fluctuations, Unemployment, and Inflation

Higher unemployment insurance benefits tend to increase unemployment because they

Correct AnswerverifiedShow Answer

During a sustained economic expansion,

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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