Spending for unemployment compensation and welfare benefits increase automatically
A)When the economy expands.
B)When the economy goes into recession.
C)When voters make the decision to increase these items.
D)Only when the fiscal year begins.

Question

Quizplus · Accepted Answer

Unemployment compensation and welfare benefits are safety net programs designed to provide support to individuals experiencing financial hardship. Therefore, as the economy enters a recession and job losses increase, more individuals become eligible for these programs and expenditures increase automatically to provide assistance. In contrast, when the economy expands and job opportunities increase, fewer individuals require this support and expenditures decrease. Therefore, choice B is the correct answer.

Spending for Unemployment Compensation and Welfare Benefits Increase Automatically