During a recession, unemployment insurance ensures that
A) firms layoff fewer of its employees than it would if there is no unemployment insurance.
B) disposable income increases as GDP falls.
C) disposable income does not fall by as much as GDP decreases.
D) the marginal propensity to consume increases.
Correct Answer:
Verified
Q44: During a contraction,
A) higher income tax revenues
Q45: An expansionary fiscal policy
I. includes an increase
Q46: In general, personal income taxes
A) rise automatically
Q47: Automatic stabilizers are considered
A) discretionary fiscal policies.
B)
Q48: Which of the following describes a discretionary
Q50: In 2003, Congress passed a substantial cut
Q51: During an expansion, which of the following
Q52: A transfer payment that rises automatically during
Q53: Which of the following describes a discretionary
Q54: Which of the following is an advantage
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