Which of the following would not be considered an automatic stabilizer?
A. Defense spending
B. Unemployment compensation
C. Income tax
D. Welfare payments
Answer: A
You might also like to view...
Identify at least three key factors in the HPAE's economic success?
What will be an ideal response?
If a 1 percent change in the price of a good causes a 1 percent change in the quantity demanded of that good, then the demand is said to be:
a. perfectly elastic. b. income elastic. c. unit-elastic. d. inelastic. e. perfectly inelastic.
If a country has Y > C + I + G, then it has
a. positive net capital outflow and positive net exports. b. positive net capital outflow and negative net exports. c. negative net capital outflow and positive net exports. d. negative net capital outflow and negative net exports.
In order to make oil profits as large as possible, OPEC meets to set oil production quotas for its members. OPEC is best classified as a:
A. monopoly. B. cartel. C. a monopolistically competitive industry. D. price-leadership industry.