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In the short term it moves countercyclically to the business cycle.
The results of both investigations suggested that, far from moving countercyclically, real wages moved procyclically: increases in output and employment appeared to be correlated with increases in the real wage rate.
The theory behind unemployment insurance was the same then as now: to provide a temporary cushion for people out of work and to act countercyclically against the economy by making more money available for consumption when unemployment rates were high.