Automatic stabilizers    are included in discretionary fiscal spending. cause spending to decrease during a recession. help to moderate the extremes during the business cycle. are zero at full employment.

Q: Question 44 During normal times, discretionary fiscal policy O is very effective. O is probably not…

A: During normal times, discretionary fiscal policy is not much effective in stabilizing economy, as…

Q: All of the following are automatic fiscal stabilizers EXCEPT O a congressionally mandated decrease…

A: An automatic stabilizer is a policy in effect at all the time in an economy and works inverse of the…

Q: Expansionary fiscal policy   Group of answer choices can be effective in the long run.   causes…

A: Expansionary fiscal policy refers to the policy use of the government budget to affect the overall…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Expresses in detail the effects of expansionary and contractionary fiscal policy on income and the…

A: In an economy, fiscal policies are implemented by the government to influence the aggregate demand…

Q: Define and give three examples of automatic stabilizers

A: Automatic stabilizers are the ones that get automatically adjusted without government interference…

Q: _____ are elements of fiscal policy that automatically change when income changes.   a. Budget…

A: Fiscal policy is one of the tools of the government to influence macroeconomic conditions such as…

Q: Explain each of these statements supported by reasonable reasoning:   1. Zero lag is among the…

A: Automatic stabilisers are ongoing government policies that adjust tax rates and transfer payments…

Q: Which of the following is NOT an automatic stabilizer?     income taxes   transfers for welfare…

A: As the name suggests itself Automatic stabilizers can be defined as the tool of fiscal policy which…

Q: 42. Automatic stabilizers include all of these EXCEPT a. tax revenues. b. transfer payments. c.…

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Q: The advantage of automatic stabilizers over discretionary fiscal policy is that A) automatic…

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Q: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

A: Fiscal policy(FP) tools can be implemented in two types that are automatic stabilizers and…

Q: Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in…

A: Automatic stabilizers are economic parameters that act automatically to counter the fluctuations in…

Q: Please answer all parts of the question! Thank you! 1. Answer each of the questions completely.…

A: a)Automatic stabilizer such as government increase in spending or taxes automatically stabilises the…

Q: Crowding out occurs when expansionary fiscal policy causes unemployment to rise inflation to rise…

A: Fiscal policy refers to changes in government spending and taxes.

Q: The crowding-out effect of expansionary fiscal policy suggests that Multiple Choice government…

A: Crowding out effect is that when government borrow money from public then the loanable fund supply…

Q: Federally funded student aid programs generally reduce benefits by $1 for every $1 that recipients…

A: The government purchases refers to the expenditure of the government on the final goods and…

Q: Explain how time lags present an additional problem in fiscal policy.

A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…

Q: Assume that the economy is facing a GDP gap. 1. Write a report explaining why that might have…

A: There are two types of GDP gaps i.e. rrecessionary output gap and the inflationary output gap. In…

Q: Automatic stabilizers   a)increase consumption during a recession above what it would otherwise be…

A: Automatic stabilizers work to maintain the equilibrium in the economy.  Too much of inflation or…

Q: Several problems of timing may arise in connection with fiscal policy. Which of the following is not…

A: There are some limitations of the fiscal policy(FP). The main limitation is that the policy includes…

Q: During a recession, if counter-cyclical fiscal policy were implemented we would expect the…

A: Fiscal policy refers to changes in government spending and taxes.

Q: fiscal policy is most effective when combating recessions caused by demand shocks recessions caused…

A: The use of government spending and tax policies to influence economic conditions, especially…

Q: Fiscal policy refers to Multiple Choice fact that equal increases in government spending and…

A: In an economy, two primary form of macroeconomic policies are fiscal policy and moentary policy.

Q: Supply-side fiscal policies focus on improving the incentives to work, save, and invest.   Group of…

A: In the market, when the government wants to implement fiscal policy, it can either impose…

Q: Title Actions by the Federal Government that decrease the progressivity of the tax system: a.…

A: Tax system of a country refers to the process through which the tax has been collected by the…

Q: lesae explain briefing what policy and implementation lags affect the potency of fiscal policy, and…

A: How fiscal policy works The use of taxation and government spending to impact the economy is…

Q: Examples of automatic stabilizers include which of the following? SNAP payments ("food stamps"). All…

A: Automatic stabilizers are which help to fiscally stabilize the economy without continuous…

Q: If there is a recessionary gap of $950 billion and the MCP has decreased to 0.8 than what size…

A: The marginal propensity to consume measures the degree to which a consumer will spend or save in…

Q: Which of the following statements about automatic stabilizers in Canada is the most accurate? They…

A: Automatic stabilizers are the features of the budget or the ongoing government policies that will…

Q: Contractionary fiscal policy is designed to combat demand-pull inflation and consists of a decrease…

A: Contractionary fiscal policy is implemented to reduce the inflationary gap. This gap is usually…

Q: Describe the supply-side effects of a fiscal stimulus and explain how a tax cut will influence…

A: The supply-side effects of fiscal-stimulus: Fiscal-stimulus can be given in the form of higher…

Q: Which of the following is not an automatic​ stabilizer?     A. Unemployment compensation.   B.…

A: Answer: Correct option: (B) Defense spending. Explanation: Automatic stabilizers are the components…

Q: What action could the TCMB take to reduce the crowding-out effect of an expansionary fiscal policy?

A: Expansionary fiscal policy involves increasing government spending or decreasing taxes, which…

Q: Suppose the economy is in a recession. In this case automatic stabilizers will

A: Automatic Stabilizers are defined as government policies which automatically adjust the tax rates…

Q: QUESTION 31 What is the main purpose of the automatic stabilizers? O to support social programs when…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: What are the Cost and then benefits of contractionary fiscal type in the economy

A: The policy that is used by the government during high phases of growth of the economy is being known…