What is an automatic stabilizer?
A) It refers to a discretionary policy that is triggered when actual output is not equal to potential
output to improve the economy's performance.
B) It refers to a stabilization program that keeps inflation in check automatically.
C) It refers to any government program that tends to reduce fluctuations in GDP automatically.
D) It refers to a government program that is automatically triggered when the economy enters a recession.
Ans: C) It refers to any government program that tends to reduce fluctuations in GDP automatically.
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Nominal gross private domestic investment was $1888.0 billion in 2008 and rose to $2057.4 billion in 2009. The chain-weight price index for gross private domestic investment was 106.6 for 2008 and 110.3 for 2009, where 2005 was the base year
Calculate the percent change in real gross private domestic investment (rounded to the nearest percentage point) from 2008 to 2009. A) 1% B) 3% C) 4% D) 5%
Who among the following is a free rider? a. Butch breeds the feared pit bulls, and his neighbors now erect fences around their property
b. Fred watches many public television programs, but he has never sent in a contribution. c. Barry steals candy from the store where he works. d. Betty regularly uses the local public library. e. Joe drives 20,000 miles a year on public streets, but he pays no more in taxes than Sam, who only drives 1,000 miles.
To find the output at which the firm maximizes its profits you MUST know the firm's
A. average total costs. B. average variable costs. C. average fixed costs. D. marginal costs.
Which statement is false?
A. Our 2009 trade deficit with Japan was the highest deficit ever recorded with any one country. B. Our trading position with Japan is very much like a colony and a colonial power. C. Japan had an economic revival in the 1950s and 1960s largely by targeting the American consumer market. D. If we eliminated our trade deficits with Japan and China, we would still be running a trade deficit.