Automatic stabilizers were clearly in evidence during the recession of 2007-2009 as
A) tax revenues and transfer payments both decreased.
B) tax revenues decreased.
C) tax revenues increased.
D) transfer payments decreased.
B
You might also like to view...
Which of the following statements are correct about the age-earnings cycle?
A) Earnings generally increase up till age 30 and then steadily decrease. B) Earnings increase throughout a prison's lifetime until they reach retirement. C) Earnings increase with age because workers become more productive as they age until around 50 years. Around 50 the effects of aging outweighs the further increases in productivity. D) Since every person is different we can reach no general conclusions about the age-earnings cycle.
Construct a graph of the aggregate goods and services market for an economy experiencing the following
a. a recession b. full employment c. an economic boom
cost-push inflation spiral results if the Fed's response to stagflation is to keep
What will be an ideal response?
Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals
A) 3,090 units.
B) $7,250.
C) $8,750.
D) $9,750.