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-If the Government Increases Unemployment Benefits, Then the Equilibrium Amount

Question 194

Multiple Choice

-If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
-If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________.


A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; does not change

Correct Answer:

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