When Workers Lose Their Job, They File for Unemployment Benefits;

question 186

Multiple Choice

When workers lose their job, they file for unemployment benefits; therefore, government spending on such programs naturally rises during recessions. As the economy recovers and people go back to work, spending on unemployment programs shrinks. Based on the given information, which statement is correct?

• A) Unemployment benefit programs are an example of discretionary fiscal policy.
• B) Unemployment compensation is a form of an automatic stabilizer.
• C) The spending on unemployment benefits is designed to increase short-run aggregate supply during recessions.
• D) Unemployment benefit programs are an example of a supply-side policy.

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Definitions:

Explicit Support

Direct and clear endorsement or approval of an idea, individual, or action without ambiguity.

Stressor

A stressor is any external or internal factor that causes stress to an individual, potentially affecting their mental and physical health.

Effective Communication

The process of exchanging information or ideas in a way that is received and understood as intended.

Health-care Providers

Professionals or organizations that offer medical services, treatments, advice, and support to individuals to maintain or improve their health.