Multiple Choice
Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long.
B) It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy.
C) There is no administrative cost to implementing automatic stabilizers.
D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q57: Suppose fiscal authorities raise state income tax
Q58: Suppose the economy has a recessionary gap.
Q59: Automatic stabilizers are considered<br>A) discretionary fiscal policies.<br>B)
Q60: Use the following to answer questions .<br>Exhibit:
Q61: During an expansion, which of the following
Q63: Suppose a country decreases government purchases by
Q64: Contractionary fiscal policy includes<br>A) increasing taxes and
Q65: The use of government expenditures and taxes
Q66: Use the following to answer questions .<br>Exhibit:
Q67: The government has a budget surplus if<br>A)