Which statement below is NOT true regarding government intervention in the economy? Progressive income tax is a form of automatic stabilizer. If the economy is doing badly, the government should cut spending to improve it. Most suggest that government should promote macroeconomic stability. Unemployment insurance is an automatic economic stabilizer.
Which statement below is NOT true regarding government intervention in the economy? Progressive income tax is a form of automatic stabilizer. If the economy is doing badly, the government should cut spending to improve it. Most suggest that government should promote macroeconomic stability. Unemployment insurance is an automatic economic stabilizer.
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 1SQ
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Question
Which statement below is NOT true regarding government intervention in the economy?
-
Progressive income tax is a form of automatic stabilizer.
-
If the economy is doing badly, the government should cut spending to improve it.
-
Most suggest that government should promote
macroeconomic stability. -
Unemployment insurance is an automatic economic stabilizer.
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