According to Keynesian theory, decreasing taxes and increasing government spending will most likely change consumption expenditures and unemployment in which of the following ways?

What are automatic stabilizers and how do they affect the economy? Which is the most important?

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000 . How much would a family that earned $150,000 owe?

a. $34,000 b. $42,000 c. $50,000 d. $68,000