In the United States, most of the government's taxing and spending is
A) to stabilize the economy and move it to its potential output.
B) to bring about greater income equality.
C) to keep inflation at a moderate level.
D) for purposes other than economic stabilization.
Correct Answer:
Verified
Q56: Automatic stabilizers
A) increase the problems that lags
Q57: Expansionary fiscal policy includes
A) increasing taxes and
Q58: Suppose Congress increases the corporate profit tax
Q59: A contractionary fiscal policy
I. decreases a government
Q60: During a recession, rising transfer payments and
Q62: A change in government purchases shifts the
Q63: Use the following to answer questions .
Exhibit:
Q64: Use the following to answer questions .
Exhibit:
Q65: If there is a recessionary gap in
Q66: Suppose the economy is in long-run equilibrium.
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