Which of the following is an example of an automatic stabilizer?
What will be an ideal response?
an increase in unemployment compensation during recession
You might also like to view...
The welfare program economists believe to be most compatible with economic efficiency is
A. a regressive tax system. B. AFDC. C. a negative income tax. D. Medicare/Medicaid.
When the U.S. government runs a deficit, the savings in the market for loanable funds shifts:
A. right, decreasing interest rates and increasing domestic investment and NCO. B. left, increasing interest rates and decreasing domestic investment and NCO. C. right, increasing interest rates, and increasing domestic investment and NCO. D. left, decreasing interest rates and increasing domestic investment and NCO.
A change in ________ creates a movement along the aggregate demand curve but does not shift the aggregate demand curve
A) tax rates B) the price level C) fiscal policy D) None of the above because they all shift the aggregate demand curve.
In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is
A) a leftward shift in Germany's demand for money curve. B) a downward movement along Germany's demand for money curve. C) a rightward shift in Germany's money supply curve. D) an upward movement along Germany's demand for money curve.