The government's fiscal policy includes automatic stabilizers that automatically
A) increase spending during a recession.
B) increase transfer payments in a recession.
C) decrease spending during an expansionary boom.
D) All of the above answers are correct.
Correct Answer:
Verified
Q195: Automatic stabilizers
A) include unemployment benefit payments.
B) do
Q196: Automatic stabilizers
A) cushion the decrease in after-
Q197: Because of automatic stabilizers, when GDP fluctuates
Q198: If the economy falls into a recession,
Q199: The income tax system
A) enlarges movements in
Q201: Induced taxes during recessions and during expansions.
A)
Q202: The structural deficit is the deficit
A) during
Q203: The size of the government expenditure multiplier
Q204: Induced taxes and needs- tested spending the
Q205: When the economy grows, increase because real
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