Define and give three examples of automatic stabilizers

Q: The various kinds of automatic stabilizers are: Group of answer choices Expansionary Monetary Policy…

A: Automatic stabilizers are designed in such a manner that they automatically change as per the…

Q: The $1200 and $600 stimulus checks that many Americans received over the last year is an example of…

A: Meaning of Economic Growth: The term economic growth refers to the growth towards the internal…

Q: Which of these are examples of automatic stabilizers? A. sales tax revenues and income security B.…

A: The automatic stabilizer is a system in which when the economy is fluctuating or overhears, the…

Q: In case of DEFLATION, mention that which particular type of fiscal policy will be used and why and…

A: Deflation occurs when the price level falls in the economy. It is usually when people prefer to hold…

Q: Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A…

A: A discretionary expenditure is a cost that a firm or family may live without if it is absolutely…

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: please answer the following question: 1. Automatic stabilizers: A) work without the need for…

A: A boom illustrates a phase of elevated or rised growth within a business, market, industry, or…

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: Which of the following is an example of an automatic stabilizer? Congress legislates lower tax rates…

A: Automatic stabilizer are such policy tools that automatically adjust as per the need and situation…

Q: Explain how built-in (or automatic) stabilizers work. What are the differences between proportional,…

A: Automatic stabilizers: The automatic stabilizers are the economic policies and programme of fiscal…

Q: TRUE/FALSE  Accordingto Ricardian Equivalence in a strict sense, the tax multiplier is zero.

A: If the tax rate increases then the tax revenue might fall. That means, if the tax rate rises, it is…

Q: Which of the following is an example of an automatic stabilizer? When the economy goes into a…

A: The automatic stabilizer is changing in the fiscal policy that helps to stimulate the aggregate…

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: According to the classical macroeconomic model, expansionary fiscal policy has an inflationary…

A: Fiscal Policy is a policy by which the governments adjusts its amount of expenditure and taxes…

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: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: 3. Automatic stabilizers: Group of answer choices work without the need for decisions from Congress…

A: An automatic stabilizer implies the market forces that act automatically in the market to correct…

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: Which of the following are examples of automatic stabilizers? There are multiple answers     a) A…

A: Automatic stabilizers are a kind of economic policy designed to offset fluctuations in an…

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: In which situation would it make the most sense to send stimulus checks as an exapansionary fiscal…

A: Answer: Correct option: b (Forced shut-downs of the economy due to a health pandemic lead to a…

Q: Classify the actions as either discretionary spending or an automatic stabilizer. Place each action…

A:

Q: How the automatic stabilizers depend on the sizes of MPC, t, and m.

A: The automatic stabilizers are the type of fiscal policies which are mainly designed to offset the…

Q: following statements are TRUE?

A: Automatic stabilisers works automatically like progressive taxation etc while discretionary policy…

Q: Differentiate between the expansionary fiscal policy and contractionary fiscal policy with diagram…

A: Fiscal Policy: Fiscal policy is used to influence aggregate demand and maintain stability in the…

Q: Given MPC (marginal propensity to consume) = 0.75, if the government implements an expansionary…

A: MPC = 0.75 Tax multiplier = (-MPC/1-MPC) = (-0.75/1-0.75)= (-0.75/0.25)= -3.

Q: An example of an automatic stabilizer is: A) tax receipts rising when GDP rises. B) a discretionary…

A: Automatic Stabilizers are the characteristics of transfer and tax system which stimulates the…

Q: Which of the following is an example of an automatic stabilizer? Discretionary spending A new tax…

A: Automatic stabilisers are a sort of fiscal policy that works automatically to smooth out…

Q: Which of the following is an example of an automatic stabilizer? tax rates the MPC the amount of…

A: Which of the following is an example of an automatic stabilizer? The answer is - tax rate

Q: Automatic stabilizers     (a) Are government policies or programs that stabilize the economy…

A: Fiscal policy refers to policy of expenditure and taxes of government. Government makes changes in…

Q: What are the changes proposed by Budget 2021 in context of Income tax and their impact on…

A: The amendments to the income tax policies in the budget are to make it easier for citizens to…

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: Automatic stabilizers are increases in spending and reductions in taxes that__ ?which one? a.Are…

A: According to Keynesian macroeconomics, the change in aggregate demand is able to affect the output…

Q: Automatic stabilizers    are included in discretionary fiscal spending. cause spending to decrease…

A: In an economy, automatic stabilizers refers to the government actions or its policies that foes not…

Q: A. Comment on the statement: “Increasing government spending is preferred to a cut in taxes when the…

A: Basic economic analysis shows that increased government spending would be simpler in stimulating the…

Q: Which of the following is NOT an undesirable side-effect of discretionary fiscal policy?      A)…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…