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Answer to Question #10983 in Macroeconomics for Andrew Rumsey

Question #10983

Congress decides to increase the number of weeks that workers can collect unemployment insurance from 26 to 36. This adjustment will:

a) Have no impact upon employment
b) Increase unemployment
c) Decrease unemployment

Expert's answer

correct answer is b) Increase unemployment
Because people can get money during extra 10 days without working. So they will not be working.

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