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

Economics

You might also like to view...

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

Economics

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

Economics

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.

Economics

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.

Economics