Which of the following is an automatic stabilizer that moves the federal budget toward deficit during an economic contraction and toward surplus during an economic expansion?
a. Personal income tax revenues.
b. Corporate income tax revenues.
c. Unemployment benefits.
d. All of these.
d
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Define tax expenditures. What are the costs and benefits to using tax expenditures for social policy rather than direct government expenditures?
What will be an ideal response?
When the manager of a local movie theater raises the price of movie tickets from $7.50 to $8.50, his total revenue falls. This means that:
a. the demand for movie tickets is highly elastic. b. the supply of movie tickets is perfectly elastic. c. the supply of movie tickets is unit-elastic. d. the demand for movie tickets is inelastic. e. the supply of movie tickets is inelastic.
As the U.S. dollar appreciates against foreign currencies, the U.S. ____________ curve shifts _____________ resulting in a(n) _________________ in the U.S. price level and a(n) _________________ in Real GDP in the United States
A) AD; leftward; decrease; decrease B) AD; rightward; increase; increase C) SRAS; rightward; decrease; increase D) SRAS; leftward; increase; decrease
More generous unemployment insurance would
a. raise structural unemployment. b. raise frictional unemployment. c. lower structural unemployment. d. lower frictional unemployment.