Unemployment insurance are payments made to unemployed workers. Typically workers are paid for no more than 26 weeks. In December 2012, the federal government passed legislation that would extend the payments to a maximum of 73 weeks. This extension is an example of
A) automatic fiscal policy.
B) discretionary fiscal policy.
C) non-needs spending.
D) contractionary fiscal policy.
Correct Answer:
Verified
Q130: Automatic fiscal policy is at work if,
Q131: During an expansion, tax revenues _, while
Q132: Tax revenues _ during recessions and _
Q133: Tax revenues
A) are autonomous.
B) are independent of
Q134: An example of automatic fiscal policy is
Q136: During an expansion, tax revenues _ and
Q137: If the economy falls into a recession,
Q138: Government transfer payments _ during expansions and
Q139: Automatic fiscal policy occurs
A) because monetary policy
Q140: An increase in tax rates as a
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