Congress increases personal income tax rates to balance the budget. Automatic stabilizers will the in aggregate demand. increase; expansionary; increase decrease; expansionary; increase increase; contractionary; decrease decrease; contractionary; decrease the effect of

I got this one wrong, could you tell me the correct one? thank you

my choice is incorrect

my choice is incorrect

Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply. a)Additional spending on national park facilities   b)A tax hike   c)A reduction in government purchases   d)A tax cut

Automatic fiscal stabilizers the impact of demand or supply shocks on the economy since during booms and government's net tax revenues during recessions. A. magnify; increase; decrease B. magnify; decrease; increase C. does not affect; are constant; are constant D. dampen; increase; decrease E. dampen; decrease; increase

Which of the following statements about automatic stabilizers in Canada is the most accurate? They are the responsibility of the provinces since they, unlike the federal government, do not face lag problems. They are controlled by the Bank of Canada to help manage the business cycle. They are able to completely eliminate all the lag problems associated with fiscal policy. They are changes in government transfer payments and tax revenues that vary automatically and inversely to business cycle changes.

Identify one fiscal policy action that could counter the effects identified in part (a). Explain how this policy will affect each of the following. Output Employment The price level

Automatic stabilizers are increases in spending and reductions in taxes that. Are enacted by the President when the economy enters in a recession Are enacted by Congress when the economy enters in a recession Are the result of existing tax and revenue spending rules Are required by the Department of Treasury as needed

income taxes and government spending during a recession. Automatic stabilizers increase; increase increase; decrease decrease; increase decrease; decrease