Classify the actions as either discretionary spending or an automatic stabilizer. Place each action in one of the two categories.Discretionary spending or Automatic stabilizers Answer BankEconomic growth increases personal and corporate income, increasing tax payments.An increased number of layoffs increases government spending on unemployment benefits.A reduction in tax revenue that results from a recession reduces personal income and corporate profits.Congress votes to cut government spending in order to balance the budget.Government spending on welfare increases due to an increase in applicants.The government increases tax rates to prevent inflation.A bill is passed to increase unemployment benefit payments.A law is enacted that increases Medicare coverage.The government cuts taxes to stimulate consumer spending.

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Answered: Classify the actions as either…

Classify the actions as either discretionary spending or an automatic stabilizer. Place each action in one of the two categories. Discretionary spending or Automatic stabilizers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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