As economies go into recession a) Government spending will decrease b) Tax revenue will decrease c) Budget deficits will decrease d) Unemployment rates will decrease
1
As economies go into recession
a) Government spending will decrease
b) Tax revenue will decrease
c) Budget deficits will decrease
d)
2
During a recession, which of the following would NOT be considered an automatic stabilizer?
a) Decreased income tax revenues from falling incomes
b) Decreased sales tax revenues from a falling amount of sales
c) Increases in unemployment payments due to high unemployment rates
d) An increase in government spending on infrastructure to stimulate the economy
3
Suppose a $100 billion increase in government spending has caused a total of $200 billion increase in spending. What is the marginal propensity to consume?
a) MPC = 0.2
b) MPC = 0.5
c) MPC = 2.0
d) MPC = 5.0
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