An example of an automatic stabilizer is
A. changing the tax laws to increase the marginal tax rates.
B. the interest the government pays on loans.
C. the indexation of social security benefits to the consumer price index.
D. the food stamp program.
Answer: D
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Explain why price levels are lower in poorer countries
What will be an ideal response?
If a city has 3293 unemployed people and 69,884 employed people, then the city's unemployment rate equals
A) 45.0%. B) 4.5%. C) 4.3%. D) 0.45%.
HMOs create the incentive to _____
a. minimize health care expenditures b. avoid important but expensive procedures c. enroll individuals with serious illnesses d. a and b
If Microsoft is earning a rate of return greater than the return necessary for the business to continue operations in the long run, then
A. total costs exceed total revenue. B. the normal rate of return is zero. C. the firm is earning an economic profit. D. total costs exceed a normal rate of return.