If Unemployment Insurance Were So Generous That It Paid Laid

Multiple Choice

If unemployment insurance were so generous that it paid laid off workers 95 per cent of their regular salary,

A) Frictional unemployment would fall.
B) The official unemployment rate would probably understate true unemployment.
C) The official unemployment rate would probably overstate true unemployment.
D) There would be no impact on the official unemployment rate.
E) None of these answers