In: Economics
What is the likely effect on the unemployment rate?
Unemployment rate is the ratio of number of people unemployed to the labour force .
labour force is the sum of employed people and unemployed peoples .
unemployed peoples are those who are actively looking for work in last 4 weeks and comes under the working age population.
so if a huge number of people are successful in claiming the disability insurance ,it means people will not focused towards finding more work and remains unemployed .
It will increase the unemployment rate because there are already get funding of the insurance from the government .
so the answer is option A