Other things the same, automatic stabilizers tend to
a. raise expenditures during expansions and recessions.
b. lower expenditures during expansions and recessions.
c. raise expenditures during recessions and lower expenditures during expansions.
d. raise expenditures during expansions and lower expenditures during recessions.
c
You might also like to view...
Assuming that the rent ceiling is strictly enforced so that there is no black market, which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?
A) The rent for housing equals the ceiling rent or higher. B) There is excess supply of housing. C) The rent ceiling increases the amount of producers' surplus. D) The rent ceiling creates a deadweight loss. E) The rent ceiling enforces efficiency upon the housing market.
Computations of the price elasticity focus on the calculated magnitude due to of the law of demand.
Answer the following statement true (T) or false (F)
Economists are still puzzled why growth rates in the United States fell from 1973 to 1995
a. True b. False Indicate whether the statement is true or false
Which of the following represents the use of fiscal policy to achieve a fiscal stimulus?
A. Greater government expenditure or higher taxes. B. Greater government expenditure or lower taxes. C. Lower government expenditure or lower taxes. D. Lower government expenditure or higher taxes.