Asked by
Michael Reyes
on Oct 13, 2024
Verified
Which statement is true?
A) Both unemployment compensation and personal savings are automatic stabilizers.
B) Neither unemployment compensation nor personal savings are automatic stabilizers.
C) Only unemployment compensation is an automatic stabilizer.
D) Only personal savings is an automatic stabilizer.
Automatic Stabilizers
Economic mechanisms, such as progressive taxation and welfare, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.
Unemployment Compensation
A government program that provides financial assistance to individuals who have lost their jobs through no fault of their own.
- Understand the functions and impacts of automatic stabilizers within an economy, highlighting their benefits and operational mechanisms during periods of economic variability.
Verified Answer
TN
Learning Objectives
- Understand the functions and impacts of automatic stabilizers within an economy, highlighting their benefits and operational mechanisms during periods of economic variability.