The unemployment compensation program:
A) makes recessions more severe.
B) makes recession less severe.
C) makes recessions more severe and inflationary episodes less severe.
D) makes recessions less severe and inflationary episodes more severe.

Question

Quizplus · Accepted Answer

The unemployment compensation program helps to reduce the severity of a recession by providing temporary monetary support to those who have lost their jobs. This helps to maintain consumer spending, which in turn helps to stabilize the overall economy. Therefore, the correct choice is B.

The Unemployment Compensation Program