When the economy enters a recession, automatic stabilizers create:
A. higher taxes.
B. more discretionary spending.
C. budget deficits.
D. budget surpluses.
Answer: C
You might also like to view...
When the exchange rate falls, imports ________ and exports ________
A) increase; decrease B) increase; increase C) decrease; do not change D) decrease; decrease E) decrease; increase
Which of the following labor market statistics best indicates the amount of labor that is available to the economy from a given working-age population?
A) labor force participation rate B) unemployment rate C) discouraged-worker ratio D) the ratio of minimum wage to inflation
From the Keynesian perspective, when during a recession the quantity supplied is greater than the quantity demanded in the market for some goods and services, there is
A) a decline in potential GDP. B) a decline in potential GDP relative to real GDP. C) a decline in real GDP relative to both nominal GDP and potential GDP. D) a decline in real GDP relative to potential GDP.
The utility of a good is:
a. different for different consumers. b. the same for all consumers. c. constant no matter how much is consumed. d. related to the cost of producing it. e. easily measured.