Question: state the correct answer to 17 and 18 and explain why the other answers are wrong 16. All the following are examples of automatic stabilizers

state the correct answer to 17 and 18 and explain why the other answers are wrong

16. All the following are examples of automatic stabilizers EXCEPT: A. unemployment insurance benefits B. personalincome taxes welfare benefits D. Corporate income taxes E. tariffs E 17. A decrease in business taxes would lead to an increase in national income by increasing which of the following? A. The money supply B. Unemployment C. Aggregate demand only X D D. Aggregate supply only E. Both aggregate demand and aggregate supply 18. Policies intended to reduce demand-pull inflation are most likely to incre of the following in the short run? A. Gross domestic product B. The labor force participation rateline C. The price level D. Unemployment X E. Wage levels D

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