"More than 9,000 laid-off Nevada workers will qualify for a second 13-week round of extended unemployment benefits, under federal legislation signed by President Bush. [The] workers exhausted their first 13 weeks of extended benefits and will now be eligible for the new benefits, which pay an average of $293 a week." www.mercurynews.com 11/24/2008
Unemployment benefits are considered part of ________ fiscal policy. The extension of benefits would ________ fiscal policy.
A) automatic; be discretionary
B) discretionary; be automatic
C) automatic; also be considered automatic
D) discretionary; also be considered discretionary

Question

Quizplus · Accepted Answer

Unemployment benefits are part of automatic fiscal policy because they are triggered by economic conditions without the need for new legislative action. The extension of benefits through new legislation, as described, is an example of discretionary fiscal policy, where government takes specific action to influence the economy.

"More Than 9,000 Laid-Off Nevada Workers Will Qualify for a Second