One characteristic of built-in or automatic stabilizers is that
A) they require no new legislative action by Congress to have an effect.
B) they automatically produce surpluses during recessions and deficits during inflation.
C) they have no effect on the distribution of income.
D) they reduce the size of the public debt during times of recession.
A
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How does a change in quantity supplied differ from a change in supply?
A) A change in quantity supplied shifts the supply curve; a change in supply is a movement along the curve. B) A change in one of the ceteris paribus conditions affects quantity supplied, not supply. C) A change in the price affects quantity supplied, not supply. D) There is no difference.
Which of the following best describes an argument for convergence?
a. The development of new human capital can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening. b. The development of new technology can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening. c. The development of new physical capital can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening. d. The development of new financial capital can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening.
The activity involved in managing a firm is considered by economists to be
a. land activity b. labor activity c. human capital activity d. entrepreneurial activity e. nonproductive activity
The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist
a. True b. False Indicate whether the statement is true or false