Multiple Choice
Income tax acts as a shock absorber because
A) it makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP.
B) it makes disposable income, and thus consumer spending, more sensitive to fluctuations in GDP.
C) it makes disposable income, and thus consumer spending, independent of fluctuations in GDP.
D) none of these.
Correct Answer:
Verified
Correct Answer:
Verified
Q179: Figure 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-2
Q180: Table 11-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 11-1
Q181: Government transfer payments act as automatic stabilizers
Q182: If personal income taxes are increased, disposable
Q183: If a "liberal" wanted to decrease aggregate
Q185: What are the policies usually advocated by
Q186: President George W.Bush, who favored a smaller
Q187: Figure 11-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-1
Q188: Unemployment insurance is an example of<br>A)automatic stabilizer.<br>B)recessionary
Q189: If all fixed taxes in the United