Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Employment-insurance payments. Cost-of-living escalators in government contracts and pensions. Free university tuition for unemployed workers after six months of unemployment, provided that they are under
- Employment-insurance payments.
- Cost-of-living escalators in government contracts and pensions.
- Free university tuition for unemployed workers after six months of unemployment, provided that they are under 30 years old and have had five or more years of full-time work experience since high school.
From the given list, employment insurance is definitely an automatic stabilizer, but can you explain your rationale why the other two are not? What specifically disqualifies them?
During a recession, total public assistance payments and unemployment compensation payments automatically increase while income taxes automatically decrease. What do you think might be the impact on aggregate demand in the economy due to this?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started