Question

19. .......................... are revenue and expenditure items in the national budget that automatically change with the...

19. .......................... are revenue and expenditure items in the national budget that automatically change with the state of the economy that tend to stabilize GDP *

2 points

Monetary Policy

Fiscal Policy

Automatic stabilizers

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Correct answer is automatic stabilizers because "automatic stabilizers help in adjusting tax rates and transfer payments in such a way that it automatically dampen any fluctuation in business cycle and stabilize GDP. "

Monetary policy is incorrect option as " it is the policy which is used by central bank to control money supply in an economy".

Fiscal Policy is incorrect option as " it is a policy that make use of government spending and tax policies to have an impact on economy".

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Savings is always good for the economy. Automatic stabilizers work on the economy without new laws...
Savings is always good for the economy. Automatic stabilizers work on the economy without new laws being passed. Recognition lag is usually the largest time delay for fiscal policy. Crowding in is the opposite of crowding out. Running a deficit decreases the national debt. The Keynesians felt automatic stabilizers were sufficient to stabilize the economy. Savings is the only source of leakage in the basic Keynesian multiplier. U.S. unemployment benefits cover most unemployed workers. Unemployment benefits and corporate income tax...
1. What is the difference between the budget deficit and the national debt? 2. Of the...
1. What is the difference between the budget deficit and the national debt? 2. Of the two policy - monetary and fiscal; which would be a faster policy to implement to correct a macroeconomic disequilibrium and why . 3. If the Fed pursues expansionary monetary policy, what happen to money supply, interest rates and real GDP? 4. In order to reduce inflationary pressure on the economy, what fiscal policy can the government use? For example, the current economy is producing...
Which of the following best describe(s) automatic built-in stabilizers in Canada? (A) Autonomous government spending automatically...
Which of the following best describe(s) automatic built-in stabilizers in Canada? (A) Autonomous government spending automatically rises as GDP falls (B) The higher our income tax rates, the stronger are the automatic stabilizers, and the more stable is our GDP (C) The lower our income tax rates, the stronger are the automatic stabilizers, and the more stable is our GDP (D) The size of the autonomous goods market multiplier varies inversely with the level of GDP 2)The government's budget balance...
TRUE OR FALSE? Measuring A Country’s Economic Performance using the National Income Accounts with three measures...
TRUE OR FALSE? Measuring A Country’s Economic Performance using the National Income Accounts with three measures – Income, Expenditure, Output. Nominal GDP = GDP measured in current year’s prices = Real GDP * Price level. The Government affects the circular flow of Income & Expenditure because it levies taxes on HH and Firms. Also makes Transfer Payments to them under various social welfare schemes such as the State Pension. Fiscal policy can be distinguished from monetary policy, in that fiscal...
It is estimated that the recent global outbreak of Covid-19 has caused a downturn in global...
It is estimated that the recent global outbreak of Covid-19 has caused a downturn in global GDP by 2-3%. Suppose the Canadian government wants to use Fiscal and Monetary policy to stabilize the economy during the time of this outbreak. What actions should it take in terms of Fiscal Policy? In terms of Monetary Policy? Discuss how these policies work; include diagrams in your analysis. Mention some of the actual measures that have been taken by the Government so far.
1) Open market purchase will result in: increase in bank reserves and a decrease in the...
1) Open market purchase will result in: increase in bank reserves and a decrease in the federal funds rate. increase in bank reserves and an increase in the federal funds rate. decrease in bank reserves and a decrease in the federal funds rate. decrease in bank reserves and an increase in the federal funds rate. 2) An increase in government expenditure would shift the: A) aggregate demand curve rightward. aggregate demand curve leftward. aggregate supply curve rightward. aggregate supply curve...
If automatic stabilizers increase the federal budget balance by $60 billion for every 1 percent increase...
If automatic stabilizers increase the federal budget balance by $60 billion for every 1 percent increase in real GDP growth, what will happen to the federal budget balance if the economy falls into a recession of −3 percent from a growth path of +2 percent? Instructions: If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers. Change in GDP Growth Rate Change in Budget Balance billion
the effects of a change in government purchases is multiplied throughout an economy a. only when...
the effects of a change in government purchases is multiplied throughout an economy a. only when there is an increase in purchases. b. only when there is a decrease in purchases. c. because these purchases induce increases in consumption spending. d. because taxes are left unchanged. 1 points if the expenditure multiplier is equal to 4 and government increases taxes by $10 billion, then GDP will contract by a. $10 billion b. $30 billion c. $40 billion d. $60 billion...
1.When a new loan is made A. All of the answers are correct. B. Money supply...
1.When a new loan is made A. All of the answers are correct. B. Money supply will not change. C. Money supply increases. D. Money supply decreases. 2.Which of the following is a goal of monetary policy? A. All of the choices are correct. B. Promote faster long-term economic growth. C. Keep inflation in check. D. Maintain full employment. The People's Bank of China is China's central bank. As a part of its duties, the People's Bank of China would...
1. Which of the following would decrease the size of a federal budget deficit? ?A recession...
1. Which of the following would decrease the size of a federal budget deficit? ?A recession ?An increase in defense spending ?An increase in the use of automatic stabilizers ?An increase in taxes ?An increase in transfer payments 2. Which of the following is true of the federal budget process in the U.S.? Congress must approve a budget with at least a two-thirds majority vote. The federal budget must be balanced each year because the volume of international trade reduces...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT