If Unemployment Insurance Were So Generous That It Paid Laid

question 45

Multiple Choice

If unemployment insurance were so generous that it paid laid off workers 95 per cent of their regular salary,

• A)frictional unemployment would fall.
• B)the official unemployment rate would probably understate true unemployment.
• C)the official unemployment rate would probably overstate true unemployment.
• D)there would be no impact on the official unemployment rate.
• E)None of these answers.

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Definitions:

PQ

PQ, in the context of mathematics, often stands for a specific pair of points or variables in an equation or algorithm, representing a particular problem or query to be solved.

Operating Leverage

The extent to which a company uses fixed costs in its cost structure, impacting its earnings volatility.

Net Operating Income

Net Operating Income (NOI) is a financial metric that calculates a company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenue.

Salesvolume

Sales volume refers to the number of units of a product or service sold by a company in a specified period.