In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks in recognition of the growing unemployment problem. This extension is an example of:

Question

30-12-2024
Business

High School

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In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks in recognition of the growing unemployment problem. This extension is an example of:

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AmasaYas AmasaYas · Answer 1 · 2023-11-26T05:18:17-05:00

The extension of unemployment insurance benefits by the U.S. government in late 2008 is an example of fiscal policy.

Fiscal policy is the use of government spending and taxation to influence the economy. In this case, the government increased spending by extending unemployment insurance benefits, which helps to support those who are unemployed and stimulate economic activity. By providing additional funds to those who are out of work, they are able to continue spending on goods and services, which helps to support businesses and jobs.

The decision to extend unemployment insurance benefits is an example of an expansionary fiscal policy, which is designed to stimulate economic growth during a downturn. This is in contrast to contractionary fiscal policy, which is designed to slow down an overheating economy by decreasing government spending and increasing taxes.

To learn more about fiscal policy, visit here

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In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks, in recognition of the growing unemployment problem. This extension is an example of _____