Because of automatic fiscal policy, when real GDP decreases
A) government expenditures increase and tax revenues decrease.
B) the economy will automatically go to full employment.
C) government expenditures equal tax revenues.
D) government expenditures decrease and tax revenues increase.
Correct Answer:
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Q28: Suppose that real GDP equals potential GDP,
Q29: Which of the following is NOT a
Q30: Which of the following is NOT a
Q31: The structural deficit is the deficit
A)during a
Q32: Suppose the tax rate on interest income
Q34: Suppose the government increases taxes. One effect
Q35: A fall in income that results in
Q36: Changes in which of the following is
Q37: When the economy grows, _ increase because
Q38: If real GDP is less than potential
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