Because of automatic stabilizers, government budget deficits are
a. positive during both expansions and contractions.
b. negative during both expansions and contractions.
c. zero if averaged out over the entire business cycle.
d. larger during expansions and smaller during contractions.
e. smaller during expansions and larger during contractions.
E
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Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working at the plants. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will increase, decrease or stay the same. B) The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase. C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
Interest groups result when people:
A. In a certain zip code vote together B. Who share strong preferences on a choice band together C. Do not all vote in elections D. Do not have strong preferences on the issues to be voted on