Changes in expenditures and taxes that occur through automatic stabilizers
A) shift the aggregate demand curve to the right in the event of an economic expansion.
B) shift the aggregate demand curve to the left in the event of an economic contraction.
C) do not shift the aggregate demand curve.
D) cause a movement up along the aggregate demand curve the event of an economic expansion and a movement down along the aggregate demand curve the event of an economic contraction.
Correct Answer:
Verified
Q37: The sum of all past federal deficits
Q38: Suppose a country has a national debt
Q39: The use of government expenditures and taxes
Q40: Personal income taxes and transfer payments
A) acts
Q41: Discretionary fiscal policy refers to
A) deliberate government
Q43: Contractionary fiscal policy includes
A) increasing taxes and
Q44: During a contraction,
A) higher income tax revenues
Q45: An expansionary fiscal policy
I. includes an increase
Q46: In general, personal income taxes
A) rise automatically
Q47: Automatic stabilizers are considered
A) discretionary fiscal policies.
B)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents