Automatic stabilizers are government programs that:
A. exaggerate the ups and downs in aggregate demand without legislative action.
B. bring expenditures and revenues automatically into balance without legislative action.
C. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion.
D. increase tax collections automatically during a recession.
Answer: C
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The first important federal law passed to regulate monopolies in the United States was the
A) Sherman Act. B) Cellar-Kefauver Act. C) Federal Trade Commission Act. D) Clayton Act.
Which of the following is not a source of rents?
a. Tariffs b. Logrolling c. Price supports d. Entry barriers
Which of the following would shift the short-run Phillips curve?
a. an negative supply shock b. an increase in inflationary expectations c. a decrease in inflationary expectations d. All of the above.
What do you mean by Coase theorem?
What will be an ideal response?