Question

In: Economics

An increase in unemployment insurance payments (i.e., payments made by the government to eligible unemployed people)...

An increase in unemployment insurance payments (i.e., payments made by the government to eligible unemployed people) would, in effect, _______ the amount of time spent searching for a job, which would increase _______ unemployment and _______ full-employment.

  • A. increase; structural; decrease
  • B. increase; frictional; increase
  • C. decrease; frictional; increase
  • D. decrease; structural; increase
  • E. increase; frictional; decrease

Solutions

Expert Solution

"E"

This will increase the time people looking for jobs in the market and that will increase the frictional unemployment and it will decrease full employment.

Rahul Sunny answered 2 years ago
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