8. When the unemployment rate is high, there is political demand to increase the

Question

8. When the unemployment rate is high, there is political demand to increase the length of time for which those laid off can receive benefits. Empirical evidence shows this will lead to: more job destruction. more job creation. increases in the unemployment rate. reductions in unemployment. 8. When the unemployment rate is high, there is political demand to increase the length of time for which those laid off can receive benefits. Empirical evidence shows this will lead to: more job destruction. more job creation. increases in the unemployment rate. reductions in unemployment.

Explanation / Answer

Option 3

Since people would feel better off receiving unemployment benefits rather than working as the wages or salary would not substantiate their efforts. So if the economic growth increases offering good wages or salary then people would put their time to work and earn decreasing the employment rate.

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