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A Reduction in Unemployment Compensation Will

Question 66

Multiple Choice

A reduction in unemployment compensation will


A) decrease the amount of frictional unemployment.
B) increase the amount of frictional unemployment.
C) not change the amount of frictional unemployment because unemployment compensation affects only cyclical unemployment.
D) not change the amount of frictional unemployment because unemployment compensation affects only structural unemployment.
E) increase the amount of cyclical unemployment.

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