Outlays for unemployment compensation and welfare benefits
A)Increase when the economy goes into recession.
B)Increase when the economy experiences a peak.
C)Are eliminated when the economy expands.
D)Remain constant at all times.

Question

Quizplus · Accepted Answer

When the economy goes into a recession, more people lose their jobs and require unemployment compensation, and there is an increased need for welfare benefits. Therefore, outlays for unemployment compensation and welfare benefits generally increase during a recession.

Outlays for Unemployment Compensation and Welfare Benefits