Unemployment insurance and welfare programs work as automatic stabilizers. True False

Which of the following is NOT a problem associated with implementing fiscal policy. a. Policy lags b. Information lags c. Interest rate lags Od. Impact lags

Supply-side fiscal policies focus on improving the incentives to work, save, and invest.   Group of answer choices True False

If a recession persists due to nominal wage and price stickiness (i.e., slow adjustment of nominal wages downward), what kind of fiscal policy can bring us out of this recession?     decreased government expenditures and increased taxes   increased government expenditures and decreased taxes   decreased government expenditures   contractionary fiscal policy

During a recession, does G or I fall more? Why? G = goverment spending I = investment spending

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

Which of the following would not be considered an automatic stabilizer?   Question 13 options:   Income tax   Unemployment compensation   Education spending   Food stamps

Automatic stabilizers cause government revenues to during a recession and cause government expenditures to during a recession. (Choose the answer that fills in the two blanks) a. Increase; decrease b. Increase; increase C. Decrease; decrease d. Decrease; increase e. Not change; not change

Which of the following is an example of an automatic stabilizer? tax rates the MPC the amount of dollars collected in taxes interest rates