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Macroeconomics

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Unemployment Insurance and the Natural Rate of Unemployment

MACRO-1TTWVK

Consider a country whose government is considering whether or not to offer an unemployment insurance scheme.

Which of the following can be considered an advantageous labor market outcome of such a scheme?

A

It will increase the natural rate of unemployment.

B

It will decrease the incidence of workers who are able to find jobs.

C

It will improve the quality of job matches.

D

It will result in a lot of underemployed workers.