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Chapter 10: Problem 40

The 1996 Welfare Reform Act has pushed _____ our unemployment rate; our high prison population has pushed _____ our unemployment rate. a) up, up b) down, down c) down, up d) up, down

Short Answer

Expert verified
The short answer is: c) down, up.

Step by step solution

01

Analyze the effect of the Welfare Reform Act on unemployment rate

The Welfare Reform Act of 1996 aimed to reshape the government's welfare programs, placing greater emphasis on moving recipients to work rather than providing financial support. This change would lead to more people working, and thus, decreasing the overall unemployment rate. So, the effect of the 1996 Welfare Reform Act on unemployment rate is "down."
02

Analyze the effect of a high prison population on unemployment rate

A high prison population means that there are more people who are incarcerated and not working. These people are not considered part of the labor force and therefore not included in the unemployment rate calculation. However, once they are released from prison, they will likely face difficulties in finding stable jobs due to their criminal record. This difficulty in finding jobs can contribute to an increase in the unemployment rate. So, the effect of the high prison population on unemployment rate is "up."
03

Combine the effects and choose the correct answer

Based on our analysis, the 1996 Welfare Reform Act has pushed the unemployment rate "down," and the high prison population has pushed the unemployment rate "up." Therefore, the correct answer is c) down, up.

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Most popular questions from this chapter

During the Great Depression most unemployment was _____. a) 100 percent b) 200 percent c) 300 percent d) 400 percent e) 500 percent

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