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Compared to a Labor Market That Has No Unemployment Benefit

Question 21

Multiple Choice

Compared to a labor market that has no unemployment benefit system, the unemployment insurance system of the United States probably


A) leads to shorter spells of unemployment.
B) increases the unemployment rate.
C) leads to lower post-unemployment wages.
D) provides for a lower standard of living while unemployed.
E) is less costly for firms.

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