If the ultimate goal of fiscal policy aimed at aggregate supply is achieved, what happens to the aggregate price level and aggregate output?

aggregate price level decreases; aggregate output decreases

aggregate price level increases; aggregate output decreases

aggregate price level increases; aggregate output increases

aggregate price level decreases; aggregate output increases

Which of the following statements do economists generally disagree on?

At very high average tax rates, increasing tax rates further would decrease tax revenues.

No tax revenues would be collected when average tax rates are 100%.

No tax revenues would be collected when average tax rates are 0%.

At an average tax rate of 50%, tax revenues are maximized for a government.

Which of the following is an example of an automatic stabilizer?

the government raising interest rates to reduce inflation

unemployed workers claiming unemployment benefits during a recession

business laying off workers during a recession

consumers spending more when the economy is strong

The fact that it takes a very long time for Congress to debate and enact fiscal policies such as a tax cut for low-income households is an example of a(n):

implementation lag.

information lag.

decision lag.

recognition lag.