Question:

What affect does the payment of government unemployment insurance have on the unemployment rate?

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A question on my homework to Macroeconomics. I will give you 'best answer' if you reply.

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  1. It encourages the unemployment rate to go UP.  See, most people look at it as six months of mostly paid vacation - and don't try to look for new work until 5 months are up.  So, the unemployed stay unemployed, and the newly unemployed keep adding to it.

    **Most, if not all, government programs actually have the exact opposite effect of their stated intent.**

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