Income taxes in Australia are part of automatic fiscal policy because
A) tax revenues decrease when income increases, intensifying the increase in aggregate demand.
B) the government can increase tax rates whenever the government deems such a policy appropriate.
C) tax rates can be adjusted by the Parliament to counteract economic fluctuations.
D) tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand.
Correct Answer:
Verified
Q74: Which of the following relationships is correct?
A)Cyclical
Q75: The Laffer curve shows that increasing _
Q76: The demand- side effect of a change
Q77: The structural deficit or surplus is the
A)actual
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