Which of the following is an example of an automatic stabilizer?
A) Congress increases the tax rate during an expansion.
B) Congress authorizes spending increases during a recession.
C) More unemployment benefits are paid during a recession.
D) Welfare payments decrease during a recession.
C
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Industry X, which is perfectly competitive, is in long-run equilibrium. Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees
As a result of this new requirement we would expect to observe: A) a decrease in price and an increase in total output in industry X. B) a decrease in price and total output in industry X. C) an increase in price and a decrease in total output in industry X. D) an increase in price and total output in industry X.
If the present value of an individual's savings account is $52,354, what is its future value in 3 years if the account earns an annual interest rate of 8 percent?
A) $66,580.89 B) $66,320.48 C) $65,950.96 D) $64,589.13
Morgan, a financial advisor, has told her clients the following things. Which of her statements is not correct?
a. "U.S. government bonds generally pay a higher rate of interest than corporate bonds." b. "The interest received on corporate bonds is taxable." c. "U.S. government bonds have the lowest default risk." d. "If you purchase a municipal bond, you can sell it before it matures."
How does the short-run equilibrium of a monopolistic competitor differ from a monopolist? How does it differ from a perfect competitor?
What will be an ideal response?