The economic impact of automatic stabilizers during recessionary periods is to
A. increase unemployment.
B. decrease money growth.
C. increase taxes.
D. increase government spending.
Answer: D
You might also like to view...
How do perfectly competitive markets allow for the movement of resources from less productive industries to more productive industries?
What will be an ideal response?
For an economy as a whole,
a. wages must equal profit. b. consumption must equal income. c. income must equal expenditure. d. consumption must equal saving.
With regard to international trade,
A. Some countries do not have a comparative advantage in producing anything. B. The market mechanism determines the terms of trade. C. Rich countries benefit at the expense of poor countries. D. The production possibilities exceed the consumption possibilities.
One application of the production possibilities concept has been to explain the difference in growth patterns of a nation with a high level of investment (Alta) and an equivalent nation with a low level of investment (Zorn). Use the concept to explain
why Alta’s economic growth would be greater than that of Zorn over time. Please provide the best answer for the statement.