In a fast growing economy which of the following would act as a stabilizer automatically acting to restrain its exlansion? a) military expenditures

b) health expenditures

c) education expenditures

d) all of these

e) income taxes

Other things being equal, if the incomes of our major international trading partners were to rise, our:

a) equilibrium price level and output would both fall

b) AS curve would shift to the right

c) AD curve would shift to the right

d) AD curve would shift to the left

e) AS curve would shift to the left

An AS curve may be horizontal over some range of real GDP output because within that range:

aresources are underemployed and an increase in AD will be satisfied without any increase in the price level

b) a higher price level leads to a reduction in consumer spending

c) output can't rise unless the price level does

d) changes in the price level do not induce substitution

e) sticky prices prevent fluctuations in output and employment

The time that elapses between the implementation of a tax cut passed by Parliament and its practical effect on the economy is an example of:

aa decision lag

b) an implementation lag

can impact lag

d a recognition lag