Consider Canada's Employment Insurance (EI)program,which Provides Benefits to Eligible Unemployed

question 18

Multiple Choice

Consider Canada's employment insurance (EI) program,which provides benefits to eligible unemployed workers.If the program is designed such that benefits are more generous in regions with higher rates of unemployment,then we can expect that

• A)cyclical unemployment will increase.
• B)frictional unemployment will decrease because workers have more time to find a well-suited job.
• C)the NAIRU will decrease.
• D)labour markets will adapt to changes more quickly as a result.
• E)structural unemployment will increase and the NAIRU will be higher than otherwise.