Which of the following might be considered an automatic fiscal stabilizer?
A. government budgeting for education
B. unemployment compensation
C. 401(k) retirement program
D. government spending for the war effort
Answer: B
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According to the circular-flow diagram, if Denny is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton's lawn,
a. the $50 represents a cost of production for Denny's firm. b. the $50 represents wages, rent, and profit to Denny's firm. c. Denny acts as a firm who interacted in the markets for factors of production with Mrs. Pendleton. d. Denny acts as a firm who interacted in the markets for goods and services with Mrs. Pendleton.
Are federal budget deficits related to trade deficits?
A. Yes. Higher deficit spending goes up resulting in more government borrowing, and foreign residents who lend funds to the U.S. government have fewer resources to spend U.S. export goods. B. No. The budget deficit is entirely a domestic matter, while the trade deficit only affects U.S. citizens who travel abroad. C. Yes. If U.S. consumers buy too many imported goods, they do not have funds to save, and a budget deficit results. D. Yes, but only if the quality of U.S. goods and services is deteriorating.
If a country voluntarily agrees to have its companies import more goods from another country, the country has
A. a mandated tariff. B. a voluntary restraint agreement (VRA). C. a mandated agreement. D. a voluntary import expansion (VIE) agreement.
Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment, output, the real interest rate, consumption, investment, and the price level.(a)Tougher immigration laws reduce the working-age population.(b)There's increased volatility in the prices of stocks and bonds.(c)The government tries to achieve tax equity by an increase in the corporate tax rate.(d)Increased computerization reduces stock market brokerage costs.
What will be an ideal response?