Q
IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?
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A
A. Frictional unemployment would fall
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B
B. The official unemployment rate would probably understate true unemployment
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C
C. The official unemployment rate would probably overstate true unemployment
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D
D. There would be no impact on the official unemployment rate
Correct Answer:
C. C. The official unemployment rate would probably overstate true unemployment
