An example of an automatic stabilizer is
A. unemployment compensation.
B. a constant money supply rule.
C. a deliberate increase in government spending to fight recession.
D. a newly enacted surtax to slow down an overheated economy.
Answer: A
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What will be an ideal response?
Internal economies of scale will ________ average cost when output is ________ by ________
A) reduce; increased; a firm B) increase; increased; a firm C) reduce; increased; the industry D) increase; increased; the industry E) reduce; reduce; the industry
There must always be a balance of a nation's
A. merchandise exports and gold imports. B. total international payments. C. imports and exports of goods and services. D. merchandise imports and exports.
According to ________ economists, the only types of unemployment that exist in an economy are structural and frictional unemployment.
A. classical B. Marxist C. monetarist D. Keynesian