The more generous unemployment benefits are, the ________ the unemployment rate remains and the ________ the time frame people tend to remain unemployed.

Question

Quizplus · Accepted Answer

Economic theory and empirical evidence suggest that more generous unemployment benefits can lead to a higher unemployment rate and a longer duration of unemployment. This is because generous benefits can reduce the urgency for unemployed individuals to find new work, allowing them to wait for better job opportunities.

The More Generous Unemployment Benefits Are, the ________ the Unemployment