The amount of time that it takes to identify a national economic problem is fisc
ID: 1203320 • Letter: T
Question
The amount of time that it takes to identify a national economic problem is fiscal policy the recognition time lag the effect time lag the action time lag An example of an automatic stabilizer is cost of living adjustments to social security payments the progressive income tax a temporary tax rebate an increase in fees at national parks Which of the following is considered investment? Mama purchases a new car because she likes its design Jane purchases a new car for commuting to and from school Johnny buys a new car for his wife as an anniversary gift James purchases a new car to replace an old car in his cab business Saving differs from savings w that saving is a flow while savings is a stock saving is a stock while savings is a flow saving is both a flow and a stock while savings is a flow only saving is both a flow and a stock while savings is a stock only Consumption goods include goods such as CD's that firms hold in inventory are only the goods bougExplanation / Answer
20.b recognition time lag
Recognition time lag: the time lag required to get information about the economy (recession or inflation).
21. b the progressive tax system.
Automatic stabilizers are changes in government spending and taxation that do not need approval by Congress or the President.
If the economy slows down, incomes decrease, and people pay less money in taxes. This decrease in tax (compared to a system without progressive taxes) puts more money in people's pockets and stimulates private spending.
22. d James purchase a new car to replace an old car for his cab business.
An investment is the purchase of goods that are not consumed today but are used in the future to create wealth.
23. a.savings are a stock, and saving is a flow.
24. b. are only the goods bought by households for personal use.
25. a
Saving is income not spent, or deferred consumption.
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