Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A recession increases the number of recipients of unemployment benefits. b. A law is enacted that increases government spending on health-care progrims. c. Legislators increase the generosity of unemployment benefits. d. Economic growth increases personal and corporate income, increasing tax payments.

Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A recession increases the number of recipients of unemployment benefits. b. A law is enacted that increases government spending on health-care progrims. c. Legislators increase the generosity of unemployment benefits. d. Economic growth increases personal and corporate income, increasing tax payments.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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ASAP
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