A fall in real GDP that results in a decrease in personal income tax receipts is an example of _________.
Fill in the blank(s) with the appropriate word(s).
automatic fiscal policy
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In the above figure, if the price is $16 per unit, a profit maximizing perfectly competitive firm will
A) shut down. B) incur an economic loss but continue to operate. C) make zero economic profit. D) make an economic profit.
The theory of purchasing power parity suggests that, in the long-run, exchange rates are determined by ________
A) relative interest rate levels B) relative price levels C) the GDP values for the two countries D) the most significant monetary authorities, including the Federal Reserve, European Central Bank, Bank of England and the Bank of Japan
In a closed economy, national savings is:
A. the sum of the savings of individuals and corporations plus the savings of the government. B. the sum of public savings plus private savings. C. equal to national investment. D. All of these are true.
Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred?
What will be an ideal response?