If a policy is implemented that reduces unemployment benefits by 50 percent and reduces by 50 percent the time the unemployed can collect these benefits, then this would most likely shift the

Question

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Reducing unemployment benefits and the time the unemployed can collect these benefits would likely increase the number of people seeking work, as the safety net of unemployment benefits becomes less attractive. This would increase the supply of labor, shifting the labor supply curve to the right.

If a Policy Is Implemented That Reduces Unemployment Benefits by 50