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Question 17 1 pts What is the chief drawback of balancing the federal budget on an annual basis? It could weaken the functioning of automatic stabilizers. It could lead to extremely high rates of inflation. It could possibly turn a recession into a depression. It could increase fluctuations in business cycles. D Question 18 1 pts Which of these government programs is NOT an automatic stabilizer? progressive tax payments unemployment compensation welfare payments universal education Question 19 1 ptsQuestion 15 1 pts Which statement is NOT true? O High marginal income tax rates may discourage work such that cutting them could actually lead to an increase in total tax revenues. Reductions in marginal income tax rates lead to increases in tax revenue at any given period for an economy that is fully developed. Economists have not established the tax rate at which the disincentive to work begins to reduce tax revenues. O Highly burdensome regulations could discourage risk taking and investment, resulting in a lower rate of economic growth. Question 16 1 pts Which of these is NOT a supply-side fiscal policy? changing government funding for basic research changing the depreciation schedules for businesses changing investment tax credits for businesses changing interest rates that changes the money supplyQuestion 12 1 pts Which of these statements reflects the argument put forward by Arthur Laffer? The higher the tax rates, the lower will be the tax revenue at any point in time. O The higher the tax rates, the higher will be the tax revenue at any point in time. A reduction in tax rates always increases tax revenues. Once tax revenues are maximized, an increase in tax rates reduces tax revenues. D Question 13 1 pts Which of these measures will NOT increase aggregate supply in an economy? cutting individual marginal tax rates from 35% to 25% providing government grants for research and development. improving accessibility to life-saving drugs. O implementing long depreciation schedules for businesses