Which of the following best describes the built-in stabilizers as they function in the United States?
A. Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as the national income rises.
B. Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of national income.
C. Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as national income rises.
D. Personal and corporate income tax collections and transfers and subsidies all automatically vary directly with the level of national income.
C. Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as national income rises.
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A price floor
A) changes the equilibrium price if it is imposed in black markets. B) changes the price and quantity if it is set below the equilibrium price. C) changes the price and quantity if it is set above the equilibrium price. D) does not create a black market if it is set above the equilibrium price. E) changes the price and quantity only if it equals the equilibrium price.
Cost-push inflation is to ________ as demand-pull inflation is to ________
A) impatience; inaccuracy B) entering; exiting C) activism; nonactivism D) fiscal; monetary E) none of the above
A constitutional amendment requiring the federal government to balance its budget annually would
a. require a decrease in taxes and/or an increase in government spending during an economic expansion. b. require an increase in taxes and/or a decrease in government spending during a recession. c. destabilize the economy. d. All of the above.
today, the cash price for corn (delivery october) in nevada, ia is $3.30/bu and the cash price for corn is $3.24/bu in grinnell, ia. if a producer calculated that $0.08/bu was the amount that it would cost to cover all transportation and handling costs for shipping corn from grinnell to nevada, a farmer located near granola would:
a) sell corn in grinnell b) pay transport costs and sell corn in nevada