If government policy makers were worried about the inflationary potential of the economy, which of the following would be a correct fiscal policy change?
a. Decrease consumption taxes

The economy's self-correcting mechanism

a. tends to push unemployment toward a specific point called the natural rate of unemployment. b. works better at correcting inflationary gaps than recessionary gaps. c. cannot work if the Phillips curve is vertical. d. ensures that the economy will not have to endure a long period of high unemployment.

Property taxes are:

A. Collected primarily at the Federal level B. The largest source of tax revenue for local governments C. The primary source of Federal revenue sharing funds D. Used primarily by states to finance state welfare programs