An example of an automatic stabilizer is: O A. government transfers rising when GDP rises. O B. tax receipts rising when GDP rises. O C. government purchases of goods and services rising when GDP rises. O D. a discretionary increase in taxes.

An example of an automatic stabilizer is: O A. government transfers rising when GDP rises. O B. tax receipts rising when GDP rises. O C. government purchases of goods and services rising when GDP rises. O D. a discretionary increase in taxes.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 14SCQ: Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in...

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An example of an automatic stabilizer is:
A. government transfers rising when GDP rises.
B. tax receipts rising when GDP rises.
O C. government purchases of goods and services rising when GDP rises.
D. a discretionary increase in taxes.
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