6. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all that apply. As unemployment falls during an expansion, unemployment insurance payments decline. As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates. In 2001, partly in response to a recession, Congress enacted lower income tax rates and increased tax exemptions for married couples. In 1968, Congress enacted a temporary 10% increase in personal income tax rates in response to an inflationary GDP gap.

Q: 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by…

A:

Q: Which of the following is NOT a discretionary fiscal policy A. Making automatic stabilizers more…

A: Fiscal policy refers to the impact on the economy that is produced by governmental spending and…

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A: Automatic stabilizers refer to the inbuilt mechanisms in a government budget.

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A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: Question 4 The Employment Insurance (EI) program is an example of an automatic stabilizer. Use this…

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Q: A. Personal Income and Payroll Taxes B. Credit Availability C. Unemploymen

A: Automatic stabilizers act to stabilize economic cycles and are automatically triggered without…

Q: Question: Which of the following is an example of a fiscal policy that has no inside lag? a- A…

A: Fiscal policy- there is a change in government expenditure and taxes to impact the money supply.…

Q: Which of the following is carried out in a contractionary fiscal policy? a. Higher taxes and lower…

A: Fiscal policy is initiated by the government of the country.

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A: Answer- Need to find- Our federal government establishes a budget that determines what programs and…

Q: 7. ​Examine whether the following items are built-in stabilizers or discretionary changes.…

A: Note-- Since you have posted the questions with multiple subparts, we will solve the first three…

Q: Title Actions by the Federal Government that decrease the progressivity of the tax system: a.…

A: Tax system of a country refers to the process through which the tax has been collected by the…

Q: Which of the following is an appropriate discretionary (active) fiscal policy if there is a…

A: We need expansionary fiscal policy to close the recessionary gap.

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Q: 3. What is fiscal equalization? Give an example

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A:

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Q: As the economy declines into recession, the collection of personal income tax revenues automatically…

A: A recession is a significant slowing or contraction of the economy. A recession typically results…