Because of the automatic stabilizers, a decline in the level of economic activity will cause:
a. a reduction in tax revenues collected.
b. an increase in government expenditures.
c. a greater budget deficit.
d. all of these.
d
Economics
You might also like to view...
Explain how labor resistance and political and legislative influences reduce the ability of firms to minimize their costs of production. What do the two have in common in this regard?
What will be an ideal response?
Economics
Assume a firm is run as a zero-profit enterprise. Which of the following would be TRUE?
A) There is a higher probability that wage reductions would outweigh layoffs. B) Those in charge would not act any different than regular owners, there would still be layoffs. C) Those not in charge would remain risk neutral. D) Wage reductions would be lower than they would be if the firm was run for profit.
Economics