An automatic stabilizer is at work if as real GDP increases...

What will be an ideal response?

tax revenues increase and transfer payments decrease

Economics

You might also like to view...

Refer to the scenario above. What is the absolute value of Gary's arc elasticity of demand for shirts?

A) 1.2 B) 2.14 C) 3.26 D) 5

Economics

The measure of GDP which effectively updates the prices for the base year each year and reduces the errors from changes in relative prices and the introduction of new goods and services is called the

A) nominal GDP. B) real GDP. C) deflated GDP. D) chain-weighted GDP.

Economics