As Figure 10.5 shows, government receipts and outlays tend to fluctuate over time. For example, beginning in 2007, when the economy stagnated as a consequence of the financial crisis, government receipts declined while outlays increased
What will be an ideal response?
Economists refer to the change as the automatic stabilization effect of government spending and taxes. It refers to the way in which the government budget moderates fluctuations of aggregate demand even without any active decision-making or legislating by the government
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The real power within the Federal Reserve lies with the
A) Council of Economic Advisors. B) Council of Monetary Advisors. C) Board of Governors. D) Federal Reserve District banks.
Approximately how many women were estimated to be "missing" in China?
(a) 20-30 million (b) 35-48 million (c) 44-50 million (d) 52-58 million
According to supply-side theorists, a decrease in marginal tax rates will provide the incentive to
A. Invest less. B. Reduce regulation. C. Work less. D. Produce more.
Costs that are incurred when people engage in a trade
A) are a waste of resources because they do not create benefits of equal or greater value. B) can be eliminated by substituting government regulation for voluntary exchange. C) reduce the amount of exchange that occurs. D) rise as the number of middlemen increases.