Suppose the government reduces the number of weeks a worker who becomes unemployed can collect unemployment insurance payments.All else the same,we would expect ________ unemployment to ________.
A) frictional; decrease
B) structural; decrease
C) cyclical; decrease
D) structural; increase
E) frictional; increase

Question

Quizplus · Accepted Answer

Reducing the duration of unemployment benefits typically decreases frictional unemployment because it incentivizes unemployed workers to find new jobs more quickly.

Suppose the Government Reduces the Number of Weeks a Worker