In November 2009,the United States was in a deep recession.To help keep the economy afloat,the government extended the period of time one could receive unemployment insurance to 99 weeks.This policy had an unintended consequence because

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Extending the period of time one could receive unemployment insurance to 99 weeks incentivized workers to search for the perfect job, which increased frictional unemployment. This is because workers were less willing to take lower-paying or less desirable jobs in the short-term, instead choosing to wait for a better opportunity. This led to a higher unemployment rate, as there were more workers actively seeking employment for an extended period of time. Option A is incorrect, as extending the length of time one can receive unemployment insurance actually increased the duration of unemployment and incentivized workers to search for jobs for longer periods of time. Option B is incorrect, as workers would need to have been employed to qualify for unemployment insurance in the first place. Option D is incorrect, as employers being hesitant to fire workers implies that there are fewer job losses, which would decrease the unemployment rate. Option E is incorrect for the same reason as Option D.

In November 2009,the United States Was in a Deep Recession