Homework Answers
Automatic stabilizers are a type of fiscal policy which help to offset any fluctuation in a country's GDP without legislative action. These policies help in increasing taxes and decreasing transfer payments in periods of rapid growth (boom), and decrease taxes and increase transfer payments in times of recessions. They thus help to bring expenditures and revenues automatically into balance without legislative actions.
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Automatic stabilizers are government programs that tend to reduce the ups and downs in aggregate demand...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers...
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers is that they: Select one: a. automatically result in surpluses during recessions and deficits during economic booms b. automatically decrease the price level during inflation and increase the price level during deflation. C. do not require any legislative action by Congress to take effect. O d. guarantee that the federal budget will be balanced over the course of the business cycle.. o e. simultaneously...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a. Tax revenues fall as real GDP decreases. b. Congress decides to cut spending on national defense. c. Congress cuts individual income tax rates. d. Tax revenues rise after Congress raises corporate tax rates. QUESTION 7 When a country's economy is producing at a level that is less than its potential GDP, the standardized employment deficit will show a ________ than the actual deficit. a....
QUESTION 32 How federal government taxing and spending affects aggregate demand is a. a major concern...
QUESTION 32 How federal government taxing and spending affects aggregate demand is a. a major concern of fiscal policy. b. a major concern of international policy. c. a major concern of corporate policies. QUESTION 34 How would a balanced budget amendment change the effect of automatic stabilizer programs? a. They could no longer exist because the government would not have a way to pay for these programs. b. They would lose flexibility because spending could not increase unless funds were...
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal...
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal policy can reduce real growth. it makes no difference for fiscal policy. they can continue to borrow forever without any adverse consequences. 2. Increases in government spending financed through additional borrowing will typically: lead to higher taxes. lead to higher interest rates. stimulate both consumption and investment. provide more stimulus than when government spending is financed through higher taxes. 3. In a recession, automatic...
Econ HW, please help! UTION # FISCAL POLICY NAME the mix of government spending and taxing...
Econ HW, please help!
UTION # FISCAL POLICY NAME the mix of government spending and taxing in order to balance the Fiscal policy is best defined as: uncontrolled government spending, altering the mix of govern budget every fiscal year. changes in govern macroeconomic goals. vernment spending and taxing for the purpose of achieving certain minimizing government expenditures over the fiscal year. , while reases in government spending and lower taxes represent decreases in government spending and higher taxe contractionary fiscal...
Q 12 , 13, 14 * Deliberate changes in government expenditures and taxes to influence GDP...
Q 12 , 13, 14 * Deliberate changes in government expenditures and taxes to influence GDP A. are enacted by the Council of Economic Advisers. B. are examples of automatic fiscal policy because the politicians automatically respond. C. operate without time lags. D. are forms of discretionary fiscal policy. ----------------------------------------- The term "stagflation" refers to the situation when A. real GDP and the price level both rise because of an increase in aggregate demand. B. prices become stagnant and do...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing...
1. Which one of the following is not an example of expansionary fiscal policy? a. Increasing government spending on unemployment insurance b. Decreasing government spending on education c. Decreasing federal income tax rates d. Increasing government spending on the military e. Decreasing local property taxes 2. In recessions, tax revenues tend to decline and transfer payments like unemployment insurance and food stamps tend to increase, so these programs... a. increase unemployment. b. create budget surpluses during economic downturns. c. are...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases real GDP by $20 million. Group of answer choices 0.20 0.25 2 5 4 (2) A major benefit of automatic stabilizers is that they: Group of answer choices guarantee a balanced budget over the course of the business cycle. have a tendency to reduce the national debt. moderate the effect of fluctuations in the business cycle. require legislative review by Congress before they can...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing and spending affects aggregate demand. how changes to the budget affect the money supply. how changes to the money supply affect aggregate demand. - Previous Next Question 9 1 pts of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress increases individual income tax rates. Congress decides to cut spending on national parks. Tax revenues increase as real GDP...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers is that they: Select one: a. automatically result in surpluses during recessions and deficits during economic booms b. automatically decrease the price level during inflation and increase the price level during deflation. C. do not require any legislative action by Congress to take effect. O d. guarantee that the federal budget will be balanced over the course of the business cycle.. o e. simultaneously...
Econ HW, please help!
UTION # FISCAL POLICY NAME the mix of government spending and taxing in order to balance the Fiscal policy is best defined as: uncontrolled government spending, altering the mix of govern budget every fiscal year. changes in govern macroeconomic goals. vernment spending and taxing for the purpose of achieving certain minimizing government expenditures over the fiscal year. , while reases in government spending and lower taxes represent decreases in government spending and higher taxe contractionary fiscal...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing and spending affects aggregate demand. how changes to the budget affect the money supply. how changes to the money supply affect aggregate demand. - Previous Next Question 9 1 pts of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress increases individual income tax rates. Congress decides to cut spending on national parks. Tax revenues increase as real GDP...
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