Which of the following would increase the unemployment rate?
A)a law making it illegal to work more than 35 hours per week
B)a cut in unemployment compensation
C)an increase in unemployment insurance payments
D)a decrease in the minimum wage

Question

Quizplus · Accepted Answer

An increase in unemployment insurance payments can lead to a higher unemployment rate as it may reduce the urgency for unemployed individuals to find new jobs quickly, potentially prolonging the duration of unemployment.

Which of the Following Would Increase the Unemployment Rate