Automatic stabilizers
A. Are zero at full employment.
B. Help to moderate the extremes of the business cycle.
C. Cause spending to decrease during a recession.
D. Are included in discretionary fiscal spending.
Answer: B
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According to the World Bank, low-income economies are heavily concentrated in:
a. Europe and Africa. b. Europe and Asia. c. Asia and Africa. d. Asia and Australia. e. North America and Australia.
A firm's marginal and average costs may differ in the long and short run because:
A. in the short run all inputs are fixed. B. in the long run all inputs are fixed. C. in the short run all inputs are variable. D. in the long run all inputs are variable.
Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government's budget cause
a. both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall. b. both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise. c. the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall. d. the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.
Pollution is a relatively new phenomenon.
Answer the following statement true (T) or false (F)