Question

Unemployment insurance, Welfare, Medicare, Medicaid, and Social Security are key components of A) fiscal policy. B) monetary policy. C) supply-side policy. D) wage-price controls.

Answer 1

Unemployment insurance, welfare, Medicare, Medicaid, and Social Security are key components of Fiscal policy.

Answer 2

The correct answer is option A: Fiscal policy.

Fiscal policy implies decisions as regards spending and taxation in order to influence the economy of a country. Some examples are the mandated programs such as Medicare and Medicaid, in which the government invests more every year as the population ages. The federal budget spending also goes to welfare benefits and Social Security programs.