Unemployment benefits may increase the unemployment rate because unemployment benefits ?
Correct answer: B. reduce the cost of job search
- A. encourage people to quit their jobs
- B. reduce the cost of job search
- C. enable people to quit searching for work
- D. reduce the benefits of additional job searching
Explanation
Benefits can reduce the financial pressure to accept the first available job, allowing workers to search longer and raising the measured duration of unemployment. This is commonly described as reducing the cost of job search.
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