Unemployment compensation programs are called automatic stabilizers because payments increase during
A) expansionary periods.
B) periods of high unemployment.
C) both recessions and expansions.
D) wartime only.

Question

Quizplus · Accepted Answer

Unemployment compensation programs are considered automatic stabilizers because they automatically increase payments during periods of high unemployment, which typically occur during economic downturns or recessions, providing a cushion to the economy by supporting consumer spending.

Unemployment Compensation Programs Are Called Automatic Stabilizers Because Payments Increase