Question

All else equal, which of the following would increase the unemployment rate?

(i)an increase in the number of women who return to work after being stay-at-home mothers

(ii)a preference among older men to retire early

(iii)an increase in the maximum number of weeks for which someone can receive government unemployment benefits

(iv)an increase in the number of previously unemployed women who stop looking for work and become discouraged workers

Answer 1

(ii)a preference among older men to retire early

(iii)an increase in the maximum number of weeks for which someone can receive government unemployment benefits

Step-by-step explanation:

Early retirement can take place because a man has to retire from his job at a specified age, because he chose to do so, or because he has been fired. Men who had the obligation to take early retirement may become unemployed. On the other hand, in most states, workers who have lost their job can benefit from government unemployment benefits for up to twenty-six weeks. If this time-lapse increases, they may remain unemployed for longer.

These two factors can increase the unemployment rate.