Multiple Choice
Provisions in the law that imply automatic increases in government spending or decreases in taxes when real output declines are called:
A) autonomous stabilizers.
B) automatic stabilizers.
C) the marginal propensity to consume.
D) the income-expenditure multiplier.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: The basic Keynesian model is built on
Q26: Planned investment may differ from actual investment
Q37: Automatic stabilizers are provisions in the law
Q49: In the short-run Keynesian model, to close
Q50: When real output increases, planned aggregate expenditures
Q51: If firms sell more output than expected,
Q67: In the short run with predetermined prices,
Q68: Menu costs are the costs of:<br>A)running a
Q88: If planned aggregate expenditure (PAE )in an
Q94: Changes in government purchases affect planned spending