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Business, 07.04.2020 17:25 JaredO

When workers lose their job, they file for unemployment benefits; therefore government spending on such programs naturally rises during recessions. As the economy recovers and people go back to work, spending on unemployment programs shrinks. Based on the given information, which of the following is correct? Unemployment benefit programs are an example of discretionary fiscal policy. Unemployment compensation is a form of an automatic stabilizer. Unemployment benefit programs are an example of a supply-side policy. The spending on unemployment benefits is designed to increase short-run aggregate supply during recessions.

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