C. Economy\'s MPc s te supply curve is flat D. Unemployment rate is high 19. One

Question

C. Economy's MPc s te supply curve is flat D. Unemployment rate is high 19. One advantage of automati policy A. Makes the e tiscal policy over discretionary fiscal policy is that automatic fiscal than the standardized actual budget a better reflection of the condition of the economy budget oes not produce a cyclical deficit as discretionary policy does C. Is not subject to the timing problems of discretionary policy D. Has a greater multiplier effecet than discretionary policy 20. Due to automatic stabilizers, when income rises, government transfer spending: A. Increases and tax revenues decrease B. Decreases and tax revenues increase C. And tax revenues decrease D. And tax revenues increase 21. If government tax revenues automatically change in a countercyclical direction over the course of the business cycle, this would be called a(n): A. Discretionary fiscal policy B. Expansionary fiscal policy C. Fiscal multiplier effect D. Built-in fiscal stabilization ch of the following is an example of built-in stability? As real GDP decreases, income tax revenues A. Increase and transfer payments decrease B. Decrease and transfer payments increase C. And transfer payments both decrease D. And transfer payments both incrcase 23. As the economy declines into recession, the collection of personal income tax revenues automatically falls. This relationship best describes how the progressive income tax system: A. Increases crowding out in the economy B. Decreases real interest rates in the economy C. Offsets the timing problem for fiscal policy D. Serves as an automatic stabilizer for the economy 24. The more progressive the tax system, the: A. Less is the built-in stability for the economy B. Greater is the built-in stability for the economy C. Less is the effect of crowding-out on the economy D. Greater is the severity of business fluctuations on the economy please give me the answer from 1a 24

Explanation / Answer

19) c

Is not subject to the timing problems of discretionary policy

20) b

Decreases and tax revenue increases.

21) d

Non discretionary fiscal policy or built in fiscal stabilization

22) b

Decreases and transfer payment increases

23) d

Serves as the automatic stabilizers for the economy

24) b

Greater the built in stability.

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