Spending for unemployment compensation and welfare benefits increase automatically
A)When the economy expands.
B)When the economy goes into recession.
C)When voters make the decision to increase these items.
D)Only when the fiscal year begins.

Question

Quizplus · Accepted Answer

Unemployment compensation and welfare benefits are automatic stabilizers, meaning they increase automatically when the economy goes into recession. This is because more people become unemployed and require assistance during an economic downturn.

Spending for Unemployment Compensation and Welfare Benefits Increase Automatically