When the economy enters a recession, automatic stabilizers create:

a. more discretionary spending.
b. higher taxes.
c. budget deficits.
d. budget surpluses.


c

Economics

You might also like to view...

To determine the equilibrium price level and equilibrium level of real GDP, the aggregate demand and aggregate supply must

A) be considered as a multiplier. B) be disregarded. C) be considered separately. D) intersect.

Economics

An economy is experiencing a recession and policy makers are considering using discretionary fiscal policy to eliminate the recessionary ga

What will be an ideal response?

Economics

A group of firms that has entered into an agreement to restrict output and increase prices and profits is called

A) a compliance. B) a cartel. C) an oligopoly. D) a duopoly. E) a multi-firm monopoly.

Economics

Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and profitability

Indicate whether the statement is true or false

Economics