An example of an automatic stabilizer is:
A. increased unemployment rates cause the government to pay out more in unemployment insurance.
B. increased tax revenues due to nominalincome going up during a boom.
C. reduced unemployment rates during a boom means more people working, and the government pays less out in food assistance.
D. All of these are examples of automatic stabilizers.
D. All of these are examples of automatic stabilizers.
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The idea that the production function exhibits _______ implies that ________
A) diminishing returns; the Lucas Wedge increases at output increases B) diminishing returns; each additional unit of labor employed generates an ever-decreasing amount of real GDP C) increasing returns; potential GDP is always increasing D) increasing returns; output should increase steadily as technology grows E) constant returns; each additional unit of labor employed generates an increasing amount of real GDP
The prisoners' dilemma describes a single-play game that features
A) an outcome in which the participants collude. B) a large number of rivals cooperating with each other. C) a situation in which one player has better odds than the other. D) two players who are unable to communicate with each other.