Automatic stabilizers "lean against the prevailing wind" of the business cycle because:
a. they include the power of special interests.
b. the spending and tax multipliers are constant.
c. federal expenditures and tax revenues change as the level of real GDP changes.
d. wages are controlled by the minimum wage law.
c
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A country's imports of goods minus its exports of goods is reported in the goods balance
a. True b. False Indicate whether the statement is true or false
To decrease the price level the government could
A. adopt policies that discourage immigration and increase government spending. B. adopt policies that encourage immigration and decrease government spending. C. adopt policies that encourage technological advancement and increase government spending. D. adopt policies that discourage technological advancement and decrease government spending.
According to this Application, after the financial crisis of 2008, Treasury Secretary Timothy Geithner and his staff made a proposal that major banks and financial institutions be subjected to
A) regulation by Congress. B) yearly audits. C) stress tests. D) none of the above.
If a country bans the importation of a particular good, the market equilibrium is shown by the intersection of the foreign demand curve and the domestic supply curve
Indicate whether the statement is true or false