Due to automatic stabilizers, when real GDP increases, the
A) government budget remains in balance.
B) government budget deficit decreases or the government budget surplus increases.
C) government budget deficit increases or the government budget surplus decreases.
D) economy automatically moves to full employment.
E) price level remains constant.
Correct Answer:
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Q127: A government begins the year with a
Q128: Which is part of federal government spending?
A)
Q129: The cyclical deficit
A) is a persistent economic
Q130: Automatic stabilizers
A) require action by Parliament.
B) are
Q131: Government should not try to
A) eliminate budget
Q133: During a recession, tax revenues
A) fall and
Q134: There is a structural deficit when government
Q135: All of the following increase the budget
Q136: Income taxes make up almost half of
Q137: Government taxes, transfers and spending work like
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