suppose the government increases the value and duration of unemployment benefits. What will this do to an agent's reservation wage? Will this be temporary or permanent?
a) The agent's reservation wage will decrease as they can rely on higher benefits for a longer period of time
b) The agent's reservation wage will increase as they have more financial security, leading them to hold out for higher paying jobs
c) The increase in unemployment benefits will have no effect on the agent's reservation wage
d) The agent's reservation wage will increase temporarily, but then return to previous levels once the benefits are reduced. (