If a Government Redesigned Its Unemployment Insurance Programs So That

question 100

Multiple Choice

If a government redesigned its unemployment insurance programs so that the unemployed had greater incentives to quickly find appropriate jobs,then which of the following curves would shift right?

• A)the long-run Phillips curve and the long-run aggregate supply curve
• B)the long-run Phillips curve but not the long-run aggregate supply curve
• C)the long-run aggregate supply curve but not the long-run Phillips curve
• D)neither the long-run Phillips curve nor the long-run aggregate supply curve

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Definitions:

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, typically decreasing as production scale increases.

Average Variable Cost

The total variable costs (costs that change with output level) divided by the quantity of output produced.

AVC

Average Variable Cost; the cost of variable inputs divided by the quantity of output produced.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.