Congress decides to increase the number of weeks that workers can collect unemployment insurance from 26 to 36

Question

A. Increase unemployment

B. Decrease unemployment

C. Have no impact upon unemployment

Answer 1

C , it is a way to prevent less unrest .

Answer 2

The answer is A.

In Europe the unemployment system allows individuals a much longer period of unemployment compensation than does the U.S. They have a higher unemployment as a result. Individuals respond to incentives. When unemployment compensation is extended their is an incentive to extend unemployment. Thus individuals extend unemployment raising the unemployment rate.