In response to the Great Recession,Congress extended the maximum period for drawing unemployment benefits from 26 to 99 weeks.While this was done to help workers financially and to help the economy by stimulating demand,it had what unintended consequence?

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Extending the maximum period for drawing unemployment benefits for up to 99 weeks encouraged some workers to take longer to find a new job as they did not have the incentive to take a job offer that was not suitable or that paid less than their unemployment benefits. This resulted in inefficiently long job searches that kept the unemployment rate higher than it could have been.

In Response to the Great Recession,Congress Extended the Maximum Period