Backing Stabilizer

11 years ago

Backing Stabilizer
Backing Stabilizer

Determine whether each of the following is an example of an automatic fiscal stabilizer.?

a. A government agency arranges to make loans to business whenever an economic downturn begins.

b. As the economy heats up, the resulting increase in equilibrium real GDP immediately results in higher income tax payments, which dampen consumption spending somewhat.

c. As the economy starts to recover froom a recession and more people go back to work, government-funded unemployment compensation payments begin to decline.

d. To stem an overheated economy, the president, using special powers granted by Congress, authorizes emergency impoundment of funds that Congress had previously authorized for spending on government programs.

a. discretionary
b. automatic
c. automatic
d. discretionary

Automatic stabilisers do not require explicit effort on the part of the government, Options b and d are examples of these.

2.0 oz. Cut Away White Embroidery Stabilizer. ( 55 sec.)

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