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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    Explain How Unemployment Insurance Acts as an Automatic Stabilizer
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Explain How Unemployment Insurance Acts as an Automatic Stabilizer

Question 84

Question 84

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Explain how unemployment insurance acts as an automatic stabilizer.

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As income falls, unemployment rises. Mor...

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