Question 4 The Employment Insurance (EI) program is an example of an automatic stabilizer. Use this example to explain how automatic stabilizers reduce the fluctuations in income and unemployment caused by the business cycle. You may use a graph of the business cycle to illustrate. How are deficits and surpluses created differently by discretionary fiscal policy compared with automatic stabilizers? Use graphs to illustrate. Was the government of Canada’s response to COVID-19 in 2020 an example of discretionary fiscal policy or an example of an automatic stabilizer?
Question 4 The Employment Insurance (EI) program is an example of an automatic stabilizer. Use this example to explain how automatic stabilizers reduce the fluctuations in income and unemployment caused by the business cycle. You may use a graph of the business cycle to illustrate. How are deficits and surpluses created differently by discretionary fiscal policy compared with automatic stabilizers? Use graphs to illustrate. Was the government of Canada’s response to COVID-19 in 2020 an example of discretionary fiscal policy or an example of an automatic stabilizer?
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 11P
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Question 4
The Employment Insurance (EI) program is an example of an automatic stabilizer. Use this example to explain how automatic stabilizers reduce the fluctuations in income and
How are deficits and surpluses created differently by discretionary fiscal policy compared with automatic stabilizers? Use graphs to illustrate.
Was the government of Canada’s response to COVID-19 in 2020 an example of discretionary fiscal policy or an example of an automatic stabilizer?
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