Which of the following best describes the built-in stabilizers as they function in the United States?
A. The size of the multiplier varies inversely with the level of GDP.
B. Personal and corporate income tax collections automatically fall and transfers and
subsidies automatically rise as GDP rises.
C. Personal and corporate income tax collections and transfers and subsidies all
automatically vary inversely with the level of GDP.
D. Personal and corporate income tax collections automatically rise and transfers and
subsidies automatically decline as GDP rises.
D. Personal and corporate income tax collections automatically rise and transfers and
subsidies automatically decline as GDP rises.
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Does international trade benefit all the economic agents in a country when the country is opened to international trade? Explain your answer
What will be an ideal response?
Unreimbursed medical expenses in excess of 8.5% of AGI are tax deductible.
A. True B. False C. Uncertain
Firms in perfect competition will leave the industry if they
a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit
When supply falls and demand remains the same, equilibrium price _____ and equilibrium quantity ________.
A. rises; rises B. falls; falls C. falls; rises D. rises; falls