Question $120$ pts

$(03\mathrm{.}09$ MC$)$

Which of the following accurately describes the relationship between social service programs and the business cycle?

Group of answer choices

Social service programs help alleviate cyclical unemployment and inflation.

Social service programs tend to intensify recessions and inflationary periods.

Social service programs can help with recessions but do not slow inflation.

Social service programs can help with inflation but do not alleviate recessions.

Social service programs act completely independently of the business cycle.

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Flag question: Question $2$

Question $220$ pts

$(03\mathrm{.}09$ LC$)$

Which of the following is an example of an automatic stabilizer?

Group of answer choices

Time lag

The multiplier effect

A new tax law

Discretionary spending

Unemployment benefits

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Flag question: Question $3$

Question $320$ pts

$(03\mathrm{.}09$ MC$)$

As GDP increases, tax revenue $\_\_\_\_\_$ and the unemployment rate generally $\_\_\_\_\_\_.$

Group of answer choices

increases; stays the same

decreases; decreases

increases; decreases

decreases; increases

increases; increases

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Flag question: Question $4$

Question $420$ pts

$(03\mathrm{.}09$ MC$)$

Which of the following statements about a progressive income tax structure is accurate?

Group of answer choices

The more a person earns, the greater their tax burden.

The less a person earns, the greater their tax burden.

It is the least effective type of automatic stabilizer.

A person can end up making less after taxes after an income increase.

It has the tendency to worsen recessionary and inflationary cycles.

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Flag question: Question $5$

Question $520$ pts

$(03\mathrm{.}09$ MC$)$

Increasing tax revenues and falling transfer payments are an automatic response to

Group of answer choices

a recessionary period

an inflationary period

an aggregate demand decrease

price level disequilibrium

long$-$term economic growth