Higher unemployment insurance benefits tend to increase unemployment because they

a. reduce the opportunity cost of job search and, hence, increase the search time.
b. increase the opportunity cost of job search and, hence, increase the search time.
c. reduce the opportunity cost of job search and, hence, decrease the search time.
d. increase the opportunity cost of job search and, hence, decrease the search time.

A

Economics

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Sticky wages and input prices can explain why profits change along a short run aggregate supply curve

a. True b. False Indicate whether the statement is true or false

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