Which of the following effects takes place as a result of automatic stabilization?
A) extra tax revenues are generated in a boom
B) tax revenues remain constant during a recession
C) leakages increase during a recession, helping to stimulate the economy
D) Both A and C are correct.
A
Economics
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A central bank that is buying its own currency might be trying to ________
A) weaken its currency B) increase the domestic money supply C) reduce domestic interest rates D) reduce inflation
Economics
Suppose that the market for labor is initially in equilibrium. An increase in immigration will cause the equilibrium wage
a. and the equilibrium quantity of labor to rise. b. and the equilibrium quantity of labor to fall. c. to rise and the equilibrium quantity of labor to fall. d. to fall and the equilibrium quantity of labor to rise.
Economics