Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If an economy moves into a recessionary period, examples of fiscal policies that act as automatic stabilizers include A) an increase in transfer payments or
If an economy moves into a recessionary period, examples of fiscal policies that act as automatic stabilizers include
A) an increase in transfer payments or social spending, such as unemployment benefits.
B) a flat tax on households' income.
C) an increase in government defense spending.
D) an increase in tax revenues as household incomes fall.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started