If the MPS in an economy is 0.25, government could shift the aggregate demand curve rightward by $80 billion by Multiple Choice increasing government spending by $20 billion. increasing government spending by $80 billion. decreasing taxes by $20 billion. increasing taxes by $20 billion.

Automatic stabilizers have the effect of Group of answer choices eliminating all recessions. inflation. increasing the long-run supply curve. reducing recessionary gaps.

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.

The government lowers $0.9 trillion in taxes, restoring GDP from $10 trillion to its potential level of $11.2 trillion. What is the value of the tax multiplier?   A -1.33   B -0.9   C -0.75   D -1   E -1.2

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

Describe the problems with passing a balanced budget amendment.

Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2. a. The balance on the government's budget at a GDP level of $450 billion is a (Click to select) : of $ billion. b. The balance on the government's budget at a GDP level of $800 billion is a ( (Click to select) : of $ billion. C. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ [ ]billion.

Suppose that an economy is in equilibrium at a level of output of $600 million. Suppose further that the full employment level output is $2000 million. What can the President along with Congress do in order to attain the full employment output? Group of answer choices Increase the taxes. Decrease the taxes. Sell government securities. Decrease the government spending.

Suppose the economy is in a recession. In this case automatic stabilizers will  Group of answer choices cause the government's budget to move toward a surplus. cause the government's budget to move toward a deficit. not cause the government's budget to move in any particular direction. cause the government's budget to move toward a balanced budget.

If the MPS in an economy is 0.2. What is the tax multiplier? Group of answer choices a. 4 b. 5 c. -4 d. -5