A Transfer Payment That Rises Automatically During a Recession Is

question 98

Multiple Choice

A transfer payment that rises automatically during a recession is

• A) interest payments on the national debt.
• B) unemployment compensation.
• C) Social Security payments to retired persons.
• D) government payments to war veterans.

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Definitions:

Military Spending

Financial outlay by a government for the maintenance and operation of armed forces, including expenses for salaries, equipment, and facilities.

GDP

The aggregate value, in monetary or market terms, of all end-use goods and services produced domestically within a specific period is what constitutes the Gross Domestic Product.

Inflation

The speed at which the overall price level of goods and services increases, thereby diminishing the buying power.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and how it's grown over time.