please answer the following questions: numbers 2-5:
2. What is the largest component of the federal budget?
A) Entitlements
C) Defense
B) Net interest
3. Which of the following sources of revenue is used to fund government spending?
A) corporate contributions
B) political party contributions
C)
D)
4. Suppose an economy is slowing and more and more people are losing their jobs and, therefore, paying less income taxes. If policy makers try to avoid a budget deficit by raising taxe rates, this would probably
A) help pull the economy out of a depression.
B) make the economic slowdown worse.
C) increase inflation.
5. Automatic stabilizers:
A) work without the need for decisions from Congress or the White House.
B) require explicit actions each year by policy makers to become active.
C) increase elections during recessions.
D) increase aggregate demand during an economic boom.
Step by step
Solved in 3 steps
