Needs-tested spending
A)increases as real GDP increases.
B)increases as unemployment increases.
C)decreases as unemployment increases.
D)decreases in recession.
E)makes recessions more severe.

Question

Quizplus · Accepted Answer

Needs-tested spending increases as unemployment increases because it is designed to provide financial assistance to individuals who are unemployed or have low income, thus automatically rising when more people qualify for such assistance during economic downturns.

Needs-Tested Spending