Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 34, Problem 5QR
To determine
Automatic stabilizers.
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Students have asked these similar questions
Which of the following is an example of an automatic stabilizer?
When the economy goes into a recession,…
a.More people become eligible for unemployment insurance benefits.
b.Stock prices decline, particularly for firms in cyclical industries.
c.Congress begins hearings about a possible stimulus package.
d.The Federal Reserve changes its target for the federal funds rate.
Reason why B, C, D are wrong?
Which of the following is NOT an automatic stabilizer? a. income taxes b. unemployment insurance c. Medicaid d. food stamps e. monetary policy
Which of the following are examples of automatic stabilizers? Check all that apply.
Personal income taxes
Corporate income taxes
The discount rate
Chapter 34 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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- Is expansionary fiscal policy more attractive to politicians who believe in larger government or to politicians who believe in smaller government? Explain your answer.arrow_forwardIf government policy makers were worried about the inflationary potential of the economy, which of the following would be a correct fiscal policy change?arrow_forwardWhich 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 taxarrow_forward
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