The above economy is characterized by:
A)built-in stability.
B)taxes which vary directly with GDP, but government spending which is independent of GDP.
C)taxes which are independent of GDP, but government spending which varies directly with GDP.
D)a multiplier of 2.5.

Question

The above economy is characterized by:
A)built-in stability. 
B)taxes which vary directly with GDP, but government spending which is independent of GDP. 
C)taxes which are independent of GDP, but government spending which varies directly with GDP. 
D)a multiplier of 2.5.

Quizplus · Accepted Answer

The Answer of  The above economy is characterized by:
A)built-in stability. 
B)taxes which vary directly with GDP, but government spending which is independent of GDP. 
C)taxes which are independent of GDP, but government spending which varies directly with GDP. 
D)a multiplier of 2.5.

The Above Economy Is Characterized By