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In the 1990s, the Danish Government Passed Laws Tightening Eligibility

Question 72

Multiple Choice

In the 1990s, the Danish government passed laws tightening eligibility requirements for receiving unemployment benefits.What happened to Danish unemployment rates as a result of this policy change?


A) The size of the labor force declined
B) The unemployment rate decreased
C) More teenagers entered the labor force
D) The wage rate increased
E) The natural rate of unemployment increased

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