The intellectual leader of new classicals is

As a household's disposable income increases, its autonomous expenditures ________ and its induced expenditures ________

A) increase; do not change B) decrease; do not change C) increase; increase by a smaller amount than the increase in income D) do not change; increase by an amount equal to the increase in income E) do not change; increase by a smaller amount than the increase in income

Explain how the existence of unemployment compensation may actually result in a higher unemployment rate than would otherwise occur if there where no such compensation in the first place

What will be an ideal response?