Because of automatic stabilizers, when real GDP decreases
A) government expenditures increase and tax revenues decrease.
B) government expenditures equal tax revenues.
C) the economy will automatically go to full employment.
D) government expenditures decrease and tax revenues increase.
Correct Answer:
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Q188: Income taxes and transfer payments
A) prevent the
Q189: One characteristic of automatic stabilizers is that
Q190: Automatic stabilizers are at work if, as
Q191: Automatic stabilizers refer in part to
A) the
Q192: Automatic stabilization occurs
A) because government expenditures on
Q194: Taxes and government expenditures that, without need
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,
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