16.Which of the following statements best describes automatic stabilizers as they function inCanada?A.The size of the spending multiplier varies inversely with the level of GDP.B.Personal and corporate income tax collections automatically fall and transfers and subsidiesautomatically rise as GDP rises.C.Personal and corporate income tax collections and transfers and subsidies all automaticallyvary inversely with the level of GDP.D.Personal and corporate income tax collections automatically rise and transfers andsubsidies automatically decline as GDP rises.E.The size of the spending multiplier varies directly with the level of GDP. Show Accessibility: Keyboard NavigationDifficulty: HardLearning Objective: 11-01 Identify expansionary and contractionary fiscal policies; which are used by governments seeking economic stabilityLovewell - Chapter 11 #16Topic: 11-03 Use of Fiscal PolicyType: Definition17.The multiplier effect means that: Get answer to your question and much more If you're seeing this message, it means we're having trouble loading external resources on our website. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Which of the following is an example of active fiscal policy?
2. Negative net exports means that
3. Which of the following is not an example of an automatic stabilizer?
4. To decrease the money supply, the Fed would
5. The aggregate supply-aggregate demand model predicts that an unexpected increase in government spending will have what short-run effects?
6. Which of the following would be included in Gross National Product (GNP) but not in Gross Domestic Product (GDP) of the United States?
7. According to the following information, what is the unemployment rate? (Round to the nearest tenth of a percent.) Number of Employed: 10,000 Number of Unemployed: 500 Not in the Labor Force:
3,000
8. In economics, “National Saving” is calculated by
9. Which of the following is NOT one of the components of aggregate demand?
10. In the long-run, higher saving leads to
11. Which of the following is not included in a country’s Gross Domestic Product (GDP)?
12. Which of the following statements are correct?
13. The quantity equation relates a measure of the money supply (M), to the velocity of money (V), the GDP deflator (P) and real GDP (Y). Which of the following expression accurately describes the quantity equation?
14. An increase in the minimum wage will likely:
15. According to the loanable funds framework, if businesses reduce their willingness to spend money on new capital equipment,
16. Governments can increase the likelihood of economic development by
What describes an automatic stabilizer?Automatic stabilizers are mechanisms built into government budgets, without any vote from legislators, that increase spending or decrease taxes when the economy slows.
Which of the following best describes the purpose of an automatic stabilizer?Automatic stabilizers are a type of fiscal policy designed to offset fluctuations in a nation's economic activity through their normal operation without additional, timely authorization by the government or policymakers.
Which of the following is an automatic stabilizer?Automatic stabilizers include unemployment insurance, food stamps, and the personal and corporate income tax.
Which of the following is the best example of an automatic stabilizer?An example of an automatic stabilizer is unemployment benefits. During recessions the economy experiences insufficient aggregate demand, the unemployment benefits help to increase aggregate demand.
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