Unemployment compensation is an example of a(n):
A) discretionary stabilizer.
B) countercyclical stabilizer.
C) procyclical stabilizer.
D) seasonal stabilizer.
E) automatic stabilizer.

Question

Quizplus · Accepted Answer

Unemployment compensation is an automatic stabilizer because it automatically increases during periods of economic downturns as more people lose their jobs and need assistance. This helps to stabilize the economy by providing a safety net for individuals and reducing the impact of recessions on the overall economy.

Unemployment Compensation Is an Example of A(n)