Economists would predict that,other things the same,the more generous unemployment compensation a country has,the
A)shorter the duration of each spell of unemployment and the higher the unemployment rate.
B)shorter the duration of each spell of unemployment and the lower the unemployment rate.
C)longer the duration of each spell of unemployment and the higher the unemployment rate.
D)longer the duration of each spell of unemployment and the lower the unemployment rate.

Question

Quizplus · Accepted Answer

More generous unemployment compensation makes it less urgent for workers to find a new job, leading to longer unemployment spells. This can also create a disincentive for some workers to actively seek new employment opportunities, resulting in a higher unemployment rate.

Economists Would Predict That,other Things the Same,the More Generous Unemployment