Automatic stabilizers are at work if, as real GDP increases, .
A) transfer payments increase and tax revenues decrease
B) transfer payments decrease and interest rates decrease
C) tax revenues decrease and interest rates increase
D) tax revenues increase and transfer payments decrease
Correct Answer:
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Q185: Income taxes in the United States are
Q186: An automatic stabilizer
A) requires action by the
Q187: An example of an automatic fiscal policy
Q188: Income taxes and transfer payments
A) prevent the
Q189: One characteristic of automatic stabilizers is that
Q191: Automatic stabilizers refer in part to
A) the
Q192: Automatic stabilization occurs
A) because government expenditures on
Q193: Because of automatic stabilizers, when real GDP
Q194: Taxes and government expenditures that, without need
Q195: Automatic stabilizers
A) include unemployment benefit payments.
B) do
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