An automatic stabilizer is a(n)
A) change in government spending aimed at achieving a policy goal.
B) element of fiscal policy that automatically changes in value as real GDP changes.
C) element of monetary policy that automatically changes in value as real GDP changes.
D) deliberate change in taxation aimed at increasing real GDP.
E) decrease in tax rates as the economy moves into a recession.
Correct Answer:
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Q27: If the government increases spending by $100
Q28: Figure 13.2 Q29: The federal budget deficit as a percentage Q30: Crowding out refers to a(n) Q31: Budget deficits tend to grow during recessions Q33: Fiscal policy in the United States is Q34: Discretionary fiscal policy is defined as the Q35: An increase in government spending of $100 Q36: Economists define two components of fiscal policy: Q37: If fewer businesses offered new bonds to
A) increase in
A)
A)
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