Automatic stabilizers
A) are never altered.
B) often make any downturn in the economy worse.
C) must be determined by the Congress in each budget.
D) work counter-cyclically to moderate the business cycle.
D
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Refer to Figure 3.2. If Wilma plays North and Betty plays East, what is Betty's payout?
A) 12 B) 15 C) 16 D) 21
An unanticipated shift to a more expansionary monetary policy that permanently increases the rate of inflation from 2 to 6 percent will
a. reduce unemployment in the short run, but unemployment will return to the natural rate in the long run. b. reduce unemployment in the short run, but unemployment will exceed the natural rate in the long run. c. increase unemployment in the short run, but unemployment will return to the natural rate in the long run. d. exert an unpredictable impact on unemployment in the short run, but unemployment will return to the natural rate in the long run.
Which point shows where the United States economy would have a 100 percent unemployment rate?
A. Point B
B. Point C
C. Point D
D. Point E
What set of all possible combinations does the budget line show?
A. The set of all possible combinations that yield the same level of utility to the consumer. B. The set of all possible combinations that maximize a consumer's utility. C. The set of all possible combinations that can be purchased, given the consumer's income and the price of the goods. D. The set of all possible combinations that are equilibrium points.