Which of the following are examples of automatic, Ask an Expert

Economics

Which of the following are examples of automatic stabilizers? Check all that apply.

1. In response to the 2008 recession, Congress approved billions of dollars of additional spending on public infrastructure projects.

2. A corporate profits rise during an economic expansion, corporate income tax revenues rise.

3. As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates.

4. In 1968, Congress enacted a temporary 10% increase in personal income tax rates in response to an inflationary GDP gap.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91234031

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question the european central bank the ecb buys bonds on

Question: The European Central Bank (the ECB) buys bonds on the open market (from commercial banks). a) Assume that banks In the eurozone initially have no excess reserves. What is the effect of the central bank's action ...

Question suppose during some war in the future military

Question: Suppose during some war in the future, military expenditures increased by 3% of GDP. Describe optimal Fed policy under the following scenarios. (Hint: what happens to consumer and capital spending after the war ...

Question the kennedy-johnson tax cut reduced personal

Question: The Kennedy-Johnson tax cut reduced personal income tax rates by 20% during 1964 and 1965; the personal saving rate was virtually unchanged from 1963.4 to 1965.4. The Reagan tax cut reduced personal income tax ...

Question from 1947 to 1973 the us economy went through five

Question: From 1947 to 1973, the US economy went through five recessions, while Europe and Japan did not have any. Since 1982, however, cyclical downturns in Europe and Japan have been at least as frequent as in the US. ...

Question now that you have gained a good understanding of

Question: Now that you have gained a good understanding of the theoretical basis and the pre modern evolution and application of economic systems central to the rise of Western Civilization. How did economic growth and t ...

Question andrew has 12000 that he will invest to have a

Question: Andrew has $12,000 that he will invest to have a down payment in 24 years for a vacation home. Assuming he can earn 8% on his investment how much would he have at the end of 24 years? The response must be typed ...

Question suppose that one giant bank the haumongous bank of

Question: Suppose that one giant bank, the Haumongous Bank of America,held all the checking deposits of all the people, subject to a 10 percent legal reserve requirement. If Reserve increased by $1 billion, could the Hum ...

Question 1develop plan to overcome barriers your plan

Question: 1. Develop plan to overcome barriers. Your plan should be clear and specific. Another person should be able to read your plan and replicate it. 2. Discuss with colleagues. 3. Describe the anticipated barriers t ...

Question in the early 1990s mit economist lester thurow

Question: In the early 1990s, MIT economist Lester Thurow wrote that of the three major powers in the world economy in the twenty-first century, Europe would be the leader. However, its growth rate fell far behind the US ...

Question explain why government budget deficits crowd out

Question: Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd out net exports in a small open economy. Assume prices are flexible and that factors of production are ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert