Which of the following would we predict if a country increases its unemployment compensation?
A) The country would have shorter durations of each spell of unemployment, and it would have a higher unemployment.
B) The country would have shorter durations of each spell of unemployment, and it would have a lower unemployment rate
C) The country would have longer durations of each spell of unemployment, and it would have a higher unemployment rate.
D) The country would have longer durations of each spell of unemployment, and it would have a lower unemployment.
Correct Answer:
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