DQ 6 Auto
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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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