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Role of automatic stabilizers

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Reference no: EM131512959

Role of Automatic Stabilizers

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?

Reference no: EM131512959

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