The Replacement Ratio Is

The replacement ratio is

A) the reservation wage divided by the wage rate offered on a new job
B) the reduction in real GDP caused by a 1 percent reduction in unemployment benefits
C) after-tax income while unemployed divided by after-tax income while employed
D) the wage rate offered on a new job divided by unemployment benefits
E) the increase in the unemployment rate caused by a 1 percent increase in the inflation rate