Question: Why do automatic stabilizers function automatically?

Why do automatic stabilizers function

“automatically?”

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related economics Questions!

Q:

When governments run budget deficits, how do they make up the differences between tax revenue and spending? When governments run budget surpluses, what is done with the extra funds? Is it possible...

Q:

1.Have the spending and taxes of the U.S. federal government generally had an upward or a downward trend in the last few decades? 2.What are the main categories of U.S. federal government spending?...

Q:

1 . What is the difference between a budget deficit and the national debt? 2 . What is the difference between expansionary fiscal policy and contractionary fiscal policy? 3 . Under what general...

Q:

Why do automatic stabilizers function automatically?

Q:

Why do automatic stabilizers function automatically?

Q:

1. In deriving AD, when the cost of borrowing to purchase goods and services increases, the quantity demanded for those goods and services will generally decrease. This is a description of the...

Q:

Automatic stabilizers function by: Question 1 3 Answer a . Increasing the budget deficit during a boom b . Requiring new legislation to be effective c . Reducing unemployment directly d ....

Q:

31)Given a downward sloping Aggregate Demand Curve, what would happen if the U.S. price level increased? Question 31 options: A)The amount of DomesticAggregate Output purchased would increase. B)The...

Q:

31)Given a downward sloping Aggregate Demand Curve, what would happen if the U.S. price level increased? Question 31 options: A)The amount of DomesticAggregate Output purchased would increase. B)The...

Q:

4 Files 3:17 PM Fri May 13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: POLICY BASICS Use the space below to take notes during class. The Federal Reserve: Monetary Policy:...

Q:

Using MATLAB compute and plot the convolution for the following pair of sequences. Make sure to use the correct discrete time axes labels: a) x(n) [124] b) x2(n)= [0, 1, -2, 3, -4] c) x3(n) [1, 2, 3,...

Q:

A street vendor is selling three types of fruit baskets with the following contents. Apples Pears Plums 4 21 3 1 2 1 2 2 Basket A Basket B Basket C Carlos would like to purchase some combination of...

Q:

Assume the inflation rate is 2 . 8 2 % 2 . 8 2 % APR , compounded annually. Would you rather earn a nominal return of 5 . 9 5 % 5 . 9 5 % APR , compounded semiannually, or a real return of 2 . 5 8 %...

Q:

What steps could a company take to avoid making product design and marketing mistakes when introducing new products into East Germany? How would you go about hiring a plant manager for a facility you...