Unemployment insurance payments act as automatic stabilizers by
a. allowing for more consumer spending during prosperity
b. evening out workers' income over the business cycle
c. creating higher budgets during a recession
d. allowing for less consumer spending during a recession
e. evening out differences between the Phillips and Laffer curves
B
You might also like to view...
Costs of production that change with the rate of output are
A) sunk costs. B) opportunity costs. C) fixed costs. D) variable costs.
The concurrent problems of inflation and unemployment are termed:
a. depression. b. downturn. c. deflation. d. demand-pull inflation. e. stagflation.
The cost of holding money in the form of cash is
A. Equal to whatever interest you would have received at the bank or other investment alternatives. B. Always considered by noneconomists when deciding how much money to hold. C. Negative. D. Nonexistent.
Other things equal, high interest rates increase the government deficit because of higher government interest payments.
Answer the following statement true (T) or false (F)