During a Recession, Which of the Following Does Unemployment Insurance

question 167

Multiple Choice

During a recession, which of the following does unemployment insurance ensure?  

• A) that the disposable income of those who are unemployed will increase above the usual level 
• B) that disposable income does NOT fall by as much as GDP decreases 
• C) that disposable income increases as GDP falls 
• D) that the marginal propensity to consume increases

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Definitions:

Reds

Refers colloquially to red wine or to teams wearing red uniforms; context could specify further meaning.

Post Hoc

Short for 'post hoc ergo propter hoc,' a logical fallacy implying that since one event followed another, it must be caused by it.

Fallacy

A logical fallacy that undermines the validity of an argument.

Red Sweater

A clothing item designed for the upper body, characterized by its red color and typically made from wool or synthetic materials.