Unemployment Insurance and Welfare Programs Work as Automatic Stabilizers

question 4

True/False

Unemployment insurance and welfare programs work as automatic stabilizers.

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Definitions:

Reliance Damages

Compensation awarded for losses suffered as a result of relying on a promise or agreement, even if a contract was never formalized.

Lost Profits

Refers to the income that a business could have earned but was unable to due to some form of disruption or another party's actions.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Law of Restitution

A legal principle aimed at preventing unjust enrichment, requiring a party to return goods or compensation to another from whom they were unjustly received.