In equilibrium, an increase in Employment Insurance benefits
A) decreases labour market tightness, but has ambiguous effects on Q and Y.
B) increases labour market tightness, but has ambiguous effects on Q and Y.
C) decreases labour market tightness and Q, but increases Y.
D) decreases unemployment, but has ambiguous effects on Q and Y.
E) increases labour market tightness, Q, and Y.
Correct Answer:
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Q42: In equilibrium, an increase in Employment Insurance
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A) negative relationship
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A)
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