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30. In Country A, the government increases its expenditures by NIS 200 million. If the MPS is equal to 0.5, the government's action. (a) Increases;
30. In Country A, the government increases its expenditures by NIS 200 million. If the MPS is equal to 0.5, the government's action. (a) Increases; NIS 400 million. (b) Decreases; NIS 400 million. 31. Automatic stabilizers are designed to: (a) Promote global trade. (b) Simplify the tax system. real GDP by (c) Increases; NIS 200 million. (d) Has no effect on; NIS 0. (c) Moderate changes in disposable income. (d) Stabilize the bipartisan budget process. 32. A recession begins in January but government policy makers do NOT reach an agree ment/decision that a recession had in fact begun until June. This is an example of a(n): (a) Recognition time lag. (b) Action time lag. (c) Effect time lag. (d) Quick time lag
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