An example of automatic stabilizers is
A. government spending falling in a recession.
B. deficit targeting.
C. taxes falling in a recession.
D. all of the above.
Answer: C
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If a measure of real GDP could include the value of leisure time, measured real GDP would increase
Indicate whether the statement is true or false
Suppose a closed economy had public saving of -$1 trillion and private saving of $3 trillion. What are national saving and investment for this country?
a. $2 trillion, $2 trillion b. $2 trillion, $3 trillion c. $3 trillion, $3 trillion d. $4 trillion, $2 trillion
If a union wishes to maximize the number of union members employed, it will
A) accept the competitive wage. B) set a wage below the competitive wage. C) set a wage where the elasticity of demand for labor equals one. D) set a wage above the competitive wage.
When an insurance company pays 20% of the bill for health care services, this
A. reduces demand and makes demand less elastic. B. reduces supply. C. reduces demand. D. makes demand less elastic.