Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. -Businesses make investment plans many months in advance. -The current tax system acts as an automatic stabilizer. -Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. -Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president. Which of the following policies are examples of automatic stabilizers? Check all that apply. -Corporate income taxes -Personal income taxes -The discount rate
Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. -Businesses make investment plans many months in advance. -The current tax system acts as an automatic stabilizer. -Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. -Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president. Which of the following policies are examples of automatic stabilizers? Check all that apply. -Corporate income taxes -Personal income taxes -The discount rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The government possesses the tools necessary to influence the output level in the short run through use of monetary and fiscal policy. However, there is some debate regarding whether the government should attempt to stabilize the economy.
Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply.
-Businesses make investment plans many months in advance.
-The current tax system acts as an automatic stabilizer.
-Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
-Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president.
Which of the following policies are examples of automatic stabilizers? Check all that apply.
-Corporate income taxes
-Personal income taxes
-The discount rate
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