Which of the following best describes the built-in stabilizers as they function in the United States? 1) The size of the balanced-budget multiplier varies inversely with the level of GDP. 2) Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as GDP rises. 3) Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of GDP. 4) Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as GDP rises.
Which of the following best describes the built-in stabilizers as they function in the United States? 1) The size of the balanced-budget multiplier varies inversely with the level of GDP. 2) Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as GDP rises. 3) Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of GDP. 4) Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as GDP rises.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 3QP
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Which of the following best describes the built-in stabilizers as they function in the United States?
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