As the economy expands, tax revenues:
A. rise and transfer payments rise, causing the economy to expand by more than it would in the absence of automatic stabilizers.
B. fall and transfer payments rise, causing the economy to expand by less than it would in the absence of automatic stabilizers.
C. fall and transfer payments fall, causing the economy to expand by more than it would in the absence of automatic stabilizers.
D. rise and transfer payments fall, causing the economy to expand by less than it would in the absence of automatic stabilizers.
Answer: D
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Positive incentives: a. increase benefits or reduce costs
b. decrease the amount of affected behaviors. c. increase the amount of affected behaviors. d. Do both a. and c.
The various quantities of output that all market participants are willing and able to buy at alternative price levels in a given time period is:
A. Market demand. B. Aggregate demand. C. Market supply. D. Aggregate supply.
Lindahl pricing is not necessary for economic efficiency
a. True b. False
Break-even quantity is a point where
a. the level of profit is maximized b. the level of cost is minimized c. Only variable costs are covered d. There are zero profits