Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
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Chapter 24, Problem 5QR
To determine

Automatic stabilizers.

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Which of the following is an example of an automatic stabilizer? When the economy goes into a recession,… a.More people become eligible for unemployment insurance benefits. b.Stock prices decline, particularly for firms in cyclical industries. c.Congress begins hearings about a possible stimulus package. d.The Federal Reserve changes its target for the federal funds rate. Reason why B, C, D are wrong?
Which of the following is NOT an automatic stabilizer? a. income taxes b. unemployment insurance c. Medicaid d. food stamps e. monetary policy
Which of the following are examples of automatic stabilizers? Check all that apply. Personal income taxes Corporate income taxes The discount rate
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