Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long.
B) It is much easier to measure the impact of automatic stabilizers compared to the impact of
discretionary fiscal policy.
C) There is no administrative cost to implementing automatic stabilizers.
D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.
Answer: D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP
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The study of how people make decisions in situations in which attaining their goals depends on their interactions with others is called
A) oligopoly. B) competitive analysis. C) strategic analysis. D) game theory.
In the schematic theory of economic policy, the demand for money is considered
A) a policy instrument. B) an exogenous nonpolicy variable. C) a structural relation. D) a target variable. E) an irrelevant side effect.