During a recession, tax revenues ________ while government transfer payments ________, thereby mitigating part of the adverse effects of a recession and stabilizing the economy
A) fall; decrease B) fall; increase C) rise; decrease D) rise; increase
B
Economics
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The logic of the wealth effect begins with a change in the price level changing the interest rate.
a. true b. false
Economics
An example of an aggregate supply shock is
A) the cutoff of oil by the OPEC nations in the early 1970s. B) inflation caused by a surge in demand. C) the increase in the labor force due to the baby-boomer generation reaching working age. D) the increase in candy sales every February.
Economics