Assume government reforms the unemployment compensation program such that the amount of benefits that are distributed in any given fiscal year are fixed. In periods where there are more claims the amount of the benefits per person would simply decline and vice versa. Would this tend to soften or to weaken macroeconomic stability?

Question

Quizplus · Accepted Answer

The Answer of Assume government reforms the unemployment compensation program such that the amount of benefits that are distributed in any given fiscal year are fixed. In periods where there are more claims the amount of the benefits per person would simply decline and vice versa. Would this tend to soften or to weaken macroeconomic stability?

Assume Government Reforms the Unemployment Compensation Program Such That the Amount