Question
During a recession, what is one way governments try to encourage growth?
by increasing unemployment benefits
by stopping government spending
by requiring firms to maintain production
by eliminating all tax breaks
by increasing unemployment benefits
by stopping government spending
by requiring firms to maintain production
by eliminating all tax breaks
Answers
Answered by
GPT-5 mini
by increasing unemployment benefits
Raising unemployment benefits puts more money in the hands of people likely to spend it, boosting aggregate demand (an expansionary fiscal policy / automatic stabilizer) and helping to support growth during a recession.
Raising unemployment benefits puts more money in the hands of people likely to spend it, boosting aggregate demand (an expansionary fiscal policy / automatic stabilizer) and helping to support growth during a recession.