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A Recent Tax Reform Made All Unemployment Compensation Benefits Subject

Question 8

Multiple Choice

A recent tax reform made all unemployment compensation benefits subject to the federal income tax.Since unemployment compensation was tax free prior to the reform,this policy change likely:


A) reduced average job search duration and increased the unemployment rate
B) increased average job search duration and increased the unemployment rate
C) increased acceptance wages and decreased the unemployment rate
D) reduced acceptance wages and decreased the unemployment rate

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