If the government increases the length and amount of unemployment benefits, the unemployment rate will most likely _____.
A)fall, because more people will obtain jobs.
B)fall, because more people will obtain jobs
C)increase, because the benefits of being unemployed will rise
D)increase, because the benefits of being unemployed will rise.
E)stay the same, because the unemployed will not be affected.
F)stay the same, because the unemployed will not be affected
G)increase, because many of the unemployed will leave the labor force.
H)increase, because many of the unemployed will leave the labor force

Question

Quizplus · Accepted Answer

Increasing the length and amount of unemployment benefits can make being unemployed a more attractive option, which can lead to an increase in the unemployment rate as more people may choose to stay unemployed in order to collect these benefits.

If the Government Increases the Length and Amount of Unemployment