Question

In the late 1990s, Sweden's welfare reform designed to encourage work had actually made it more...

In the late 1990s, Sweden's welfare reform designed to encourage work had actually made it more beneficial for many part-time job holders to quit their jobs and receive welfare payments. This welfare reform probably increased

Multiple Choice

  • full employment.      

  • frictional unemployment.

  • cyclical unemployment.

  • the natural rate of unemployment.

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Answer #1

Full employment

The unemployment benefit will reduce the natural rate of unemployment by using increasing the supply of labor or demand for labor.

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