As the economy expands, tax revenues
A. rise and transfer payments rise, causing the economy to expand by more than it would in the absence of automatic stabilizers.
B. fall and transfer payments rise, causing the economy to expand by less than it would in the absence of automatic stabilizers.
C. rise and transfer payments fall, causing the economy to expand by less than it would in the absence of automatic stabilizers.
D. fall and transfer payments fall, causing the economy to expand by more than it would in the absence of automatic stabilizers.
Answer: C
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The primary conclusion of using inflation accounting is that inflation
a. distorts the tax system, and results in slower economic growth. b. reduces the national debt to its nominal value instead of its real value. c. causes recessions, and increases the structural deficit. d. distorts government budget accounting by exaggerating interest expense.
You are most likely to be a union member if you
A. live in a right-to-work state. B. live in the South. C. are a government employee. D. work in retailing.
In 2000, Microsoft was
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Assuming velocity is constant, a 10 percent increase in the quantity of money leads to a 10 percent increase in nominal GDP in both the short run and the long run
Indicate whether the statement is true or false