Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello I have an economics question and have provided the question via image. I need help with which of the following are examples of automatic

Hello I have an economics question and have provided the question via image. I need help with which of the following are examples of automatic stabilizers? options 1 (as corporate profits rise during an economic expansion, corporate income tax revenues rise) and 3 (as unemployment falls during an expansion, unemployment insurance payments decline) are the ones I think are the answers, is that correct? please correct me if I am wrong. Finally, Developing countries generally rely more on the government for investment than do developed countries I believe its true is that correct? please correct me if I am wrong. Here are the images below.

image text in transcribedimage text in transcribed
6. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all that apply. C] As corporate profits rise during an economic expansion, corporate income tax revenues rise. C] As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates. C] As unemployment falls during an expansion, unemployment insurance payments decline. C] In 1968, Congress enacted a temporary 10% increase in personal income tax rates in response to an inflationary GDP gap. Fiscal policy in developed versus developing countries True or False: Developing countries generally rely more on the government for investment than do developed countries. O True O False

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Inequality

Authors: Thomas Piketty, Arthur Goldhammer

1st Edition

0674504801, 9780674504806

More Books

Students also viewed these Economics questions