The elements of the stimulus package adopted in 2009 that allowed states to continue to make their unemployment compensation payments despite having exhausted their funds should be considered

Question

Quizplus · Accepted Answer

Non-discretionary fiscal policy refers to automatic stabilizers built into government programs that respond to economic conditions without any specific action from policymakers. The provision allowing states to continue payments even after their funds had been exhausted was part of the Emergency Unemployment Compensation program, an example of non-discretionary fiscal policy. Discretionary fiscal policy, on the other hand, involves deliberate changes in government spending or taxation to address specific economic issues. Monetary policy refers to actions taken by central banks to influence the supply and demand of money and credit in the economy. The provision in question did not involve monetary policy. Therefore, the best choice is B - non-discretionary fiscal policy.

The Elements of the Stimulus Package Adopted in 2009 That