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February 28, 2020

DQ 6 Auto

Business & Finance

150 Words w/reference

Which of the following would be automatic stabilizers?

Employment-insurance payments.
Cost-of-living escalators in government contracts and pensions.
Free university tuition for unemployed workers after six months of unemployment, provided that they are under 30 years old and have had five or more years of full-time work experience since high school.

Is there a stigma attached to automatic stabilizers and are they what are sometimes referred to, often derogatorily, as entitlements? As a student of macroeconomics do you see anything good in the automatic stabilizers? Why or why not?

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