An increase in Employment Insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment.
A)increase; cyclical
B)increase; frictional
C)decrease; cyclical
D)decrease; frictional
E)increase; structural

Question

Quizplus · Accepted Answer

Higher Employment Insurance payments can make it less urgent for unemployed individuals to find new jobs quickly, potentially increasing the time they spend searching for a job. This scenario is associated with frictional unemployment, which refers to the short-term unemployment that arises from the process of matching workers with jobs.

An Increase in Employment Insurance Payments Would, in Effect, ________