Welfare Reforms Enacted in 1996 Put More Pressure on Welfare

question 43

Multiple Choice

Welfare reforms enacted in 1996 put more pressure on welfare recipients to look for work.The new law mandated cutting off benefits after a certain length of time.Which of the following is likely to occur as a result of this provision?

• A)the natural rate of unemployment and the unemployment rate are likely to increase.
• B)the natural rate of unemployment is likely to decrease, but the unemployment rate is likely to increase.
• C)the natural rate of unemployment is not affected, but the unemployment rate is likely to increase.
• D)the natural rate of unemployment is not affected, but the unemployment rate is likely to fall.

---

Definitions:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.