An increase in unemployment benefits ________ and an increase in international competition that changes the location of jobs ________.

Question

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The increase in unemployment benefits leads to workers being less motivated to actively search for jobs, which increases their likelihood of being classified as frictionally unemployed. This leads to an increase in frictional unemployment. An increase in international competition that changes the location of jobs can lead to structural unemployment as certain industries or types of jobs may become obsolete or relocate entirely, causing workers in those industries to become unemployed. Therefore, an increase in international competition that changes the location of jobs increases structural unemployment.

An Increase in Unemployment Benefits ________ and an Increase in International