Employment insurance increases the amount of frictional unemployment by:
A)making workers more frantic in their search for new jobs.
B)inducing workers to accept the first job offer that they receive.
C)making employers more reluctant to lay off workers.
D)softening the economic hardship of unemployment.

Question

Quizplus · Accepted Answer

Employment insurance softens the economic hardship of unemployment, allowing workers to take more time to find a job that matches their skills and preferences, thus increasing frictional unemployment.

Employment Insurance Increases the Amount of Frictional Unemployment By