Automatic stabilization refers to

A) the policy of lowering tax rates during a recession.
B) the policy of increasing autonomous G during a recession.
C) the effect of income taxes in lowering the multiplier effect of changes in autonomous planned spending.
D) all of the above.


C

Economics

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Suppose a U.S. firm purchases some English china. The china costs 1,000 British pounds. At the exchange rate of $1. 45 = 1 pound, the dollar price of the china is

A. $1,450. B. $250. C. $690. D. $2,000.

Economics

Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 3 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:

A. positive but less than $10,000. B. zero. C. negative. D. positive and greater than $10,000.

Economics

After the September 11, 2001 terrorist attacks, non-defense, non-homeland security government spending

A. increased, but at a rate almost exactly the same as it had before the attacks. B. increased at a rate much faster than it had before the attacks. C. was cut. D. increased, but at a rate much slower than it had before the attacks.

Economics

Kevin's Golf-a-Rama sells golf balls in a perfectly competitive market. At its current level of golf ball production, Kevin has marginal costs equal to $2. If the market price of golf balls is $1, Kevin should:

A. decrease the level of golf ball production. B. continue producing the current level of production. C. increase the production of golf balls. D. raise the price of its golf balls.

Economics