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:

Behavioral

Pertaining to actions or reactions of individuals or groups in response to external or internal stimuli.

Environmental

Pertaining to the natural world and the impact of human activity on its condition.

Knowledge

The awareness, understanding, or information that has been accumulated through experiences or education, forming the basis for reasoning and decision-making.

Attitudes

Attitudes represent individuals' evaluations, feelings, and tendencies toward an object, person, concept, or situation, influencing their behavior and perceptions.