Which of the following is an example of an automatic stabilizer?
A) Congress authorizes spending increases during a recession.
B) Congress increases the tax rate during an expansion.
C) More unemployment benefits are paid during a recession.
D) Welfare payments decrease during a recession.
Correct Answer:
Verified
Q67: Suppose an economy has a balanced federal
Q68: When the economy slows down and national
Q69: The Laffer curve illustrates that
A) high tax
Q70: Recall the Application about the relationship between
Q71: Suppose an economy has a balanced federal
Q73: An increased federal budget deficit resulting from
Q74: Automatic stabilizers
A) require explicit actions by policy
Q75: Recall the Application about the relationship between
Q76: The government strives to operate at neither
Q77: Suppose the government runs a budget surplus
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