Question
Foghorn Leghorn, chatting with his son Chicken Hawk, says it is good we have programs like unemployment benefits and progressive taxes that are built into
Foghorn Leghorn, chatting with his son Chicken Hawk, says "it is good we have programs like unemployment benefits and progressive taxes that are built into the system." Chicken Hawk, puzzled, asks, "why dad?" Foghorn Leghorn replies, "because they work in the opposite direction of the general economy, therefore, soften the effects of recession and inflation." His son, not totally satisfied, asked for some elaboration. Foghorn Leghorn, of course, is not able to explain his statement.
Explain the answer by stating the name economists give to these types of policies and explain how these policies might work.
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