Increases in unemployment benefits:
A) increase the natural rate of unemployment.
B) decrease the natural rate of unemployment.
C) affect everyone the same by increasing the natural rate of unemployment.
D) affect everyone the same by decreasing the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Increases in unemployment benefits can lead to individuals becoming less willing to work, as the benefits provide an alternative source of income. This can lead to an increase in the natural rate of unemployment, as there are more people who are not actively seeking work.

Increases in Unemployment Benefits