What are automatic stabilizers and how do they affect the economy? Which is the most important?
Automatic stabilizers are changes in government transfer payments or tax collections that happen automatically and whose effects vary inversely with business cycles. The tax system is the most important automatic stabilizer. Other automatic stabilizers are unemployment compensation and welfare payments.
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An example of a quantity restriction is
A) the minimum wage. B) an import quota. C) rent controls. D) price supports in agriculture.
The price paid for the use of money is defined as the
A. Profit rate. B. Rental rate. C. Interest rate. D. Inflation rate.
Net capital outflow equals the difference between a country's
a. income and expenditure. b. investment and saving. c. purchases of foreign goods and services and sales of goods and services abroad. d. purchases of foreign assets and sales of domestic assets abroad.
A monopolist's supply of a good is
A. dependent on the monopolist's demand curve and its marginal cost curve. B. given by the portion of the monopolist's marginal cost curve that lies above the average variable cost curve. C. given by the portion of the monopolist's average variable cost curve that lies above the marginal cost curve. D. independent of the monopolist's demand curve.