Unemployment compensation is:
A) an automatic stabilizer because it rises as income increases, slowing an economic expansion.
B) an automatic stabilizer because it falls as income increases, slowing an economic expansion.
C) an automatic stabilizer because it falls as income decreases, slowing an economic contraction.
D) not an automatic stabilizer.
Correct Answer:
Verified
Q84: Suppose the government never borrows, so that
Q85: If an economy is above potential output
Q86: If income increases, a budget deficit will:
A)tend
Q87: In contrast to the functional finance view,
Q88: When inflation and unemployment are both higher
Q90: According to a Classical, sound finance perspective
Q91: If an economy is in a recession
Q92: The income tax is:
A)an automatic stabilizer because
Q93: The provisions in state constitutions requiring them
Q94: According to the Classical advocates of sound
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents