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- An automatic stabilizer is a feature of the economy thatWhich of the following is NOT an automatic stabilizer? a. income taxes b. unemployment insurance c. Medicaid d. food stamps e. monetary policyWhich of the following is not an automatic stabilizer. Pick a,b,c, or d A) Sales tax B)State retirement pension C) unemployment benefits D)income tax
- How do automatic stabilizers work How do automatic stabilizers work? How do automatic stabilizers workWhich of the following is NOT an automatic stabilizer? income taxes transfers for welfare payments unemployment insurance benefits government spending on educationincome taxes and government spending during a recession. Automatic stabilizers increase; increase increase; decrease decrease; increase decrease; decrease
- Which of the following are examples of automatic stabilizers? Check all that apply. Personal income taxes Corporate income taxes The discount rateTo combat inflation, the federal government could apply which fiscal policy? decrease government spending sell government bonds decrease taxes raise interest ratesWhat is the appropriate fiscal policy to lower the unemployment rate? Group of answer choices decrease the money supply increase the money supply increase taxes decrease government spending increase government spending do nothing
- What is the primary component(s) of GDP that Fiscal Policy is trying to effect?Identify one fiscal policy action that could counter the increase in investments. Explain how this policy will affect each of the following.i. Output ii. The price level iii. Nominal interest ratesCite the five major demand-side components of GDP. Then, identify the major elements affected by fiscal policy.