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In Response to the Great Recession,Congress Extended the Maximum Period

Question 37

Multiple Choice

In response to the Great Recession,Congress extended the maximum period for drawing unemployment benefits from 26 to 99 weeks.While this was done to help workers financially and to help the economy by stimulating demand,it had what unintended consequence?


A) It significantly increased the rate of inflation.
B) It drove the unemployment rate lower than the lowest prerecession rate.
C) It encouraged millions of unemployed workers to return to school,driving up projected future rates of labor productivity.
D) It prompted inefficiently long searches that kept the unemployment rate higher.

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