Government policies such as unemployment compensation and government regulations related to hiring and firing employees result in:
A) lower frictional unemployment.
B) lower structural unemployment.
C) higher frictional unemployment.
D) lower cyclical unemployment.
E) higher structural unemployment.

Question

Quizplus · Accepted Answer

Unemployment compensation and government regulations related to hiring and firing employees increase the cost of labor for businesses, which can make them less willing to hire new employees or retain current ones. This can lead to higher levels of frictional unemployment, as workers may find it more difficult to find new jobs or may choose to leave their current jobs more often.

Government Policies Such as Unemployment Compensation and Government Regulations Related