Automatic stabilizers reduce fluctuations in GDP by
a. eliminating spending shocks
b. increasing the amount of spending each year
c. reducing the additional spending that occurs in each round of the multiplier
d. increasing saving
e. reducing the need for government involvement in the economy
C
You might also like to view...
Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?
A) .42 books B) 2.4 books C) $10 per movie D) $24 per movie
Of the $840 billion American Recovery and Reinvestment Act stimulus package which was enacted in 2009, approximately one-third took the form of ________ and two-thirds took the form of increases in ________
A) treasury bond purchases; the money supply B) tax rebates; tax cuts C) tax cuts; government expenditures D) discretionary government spending; transfer payments
A bride accepting a proposal only if the ring is expensive enough is a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
The monopolist's marginal revenue curve is represented graphically by a negatively sloped line.
Answer the following statement true (T) or false (F)