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An increase in the unemployment rate will tend to cause which of the following?Question 12Select one:a.An increase in the quit rate.b.An increase in the duration that one is unemployed.c.A decrease in the separation rate.d.All of the above.e.None of the above.

Question

An increase in the unemployment rate will tend to cause which of the following?Question 12Select one:a.An increase in the quit rate.b.An increase in the duration that one is unemployed.c.A decrease in the separation rate.d.All of the above.e.None of the above.

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Solution

The increase in the unemployment rate will tend to cause an increase in the duration that one is unemployed. When the unemployment rate is high, it means that jobs are harder to find, so people tend to remain unemployed for longer periods. Therefore, the correct answer is b. An increase in the duration that one is unemployed.

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