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Question 12 2 pts Which of the following policies is an example of an automatic stabilizer? President Reagan who had campaigned on a platform of increased defense spending, increased defense spending in 1981 President Clinton calls for a $16-billion jobs package consisting of increased government purchase The introduction in the 1960s and 1970s of means-tested federal transfer payments in which individuals qualify depending on their income, A temporary tax increase, recommended by President Johnson's Council of Economic Advisers in 1965 D Question 13 2 pts An increase in income taxes increases disposable personal income O increases consumption O shifts the aggregate expenditure curve leftward O increases aggregate demand D Question 14 2 pts Which of the following will shift the aggregate expenditure curve to the right? O contractionary fiscal policy O An increase in transfer payments O a decrease in investment tax credit an increase in income taxes D Question 15 2 pts An increase in the investment tax credit, O will decrease investment O will shift the aggregate demand curve to the left O raise the real GDP O lower prices D Question 16 2 pts Policymakers who believe the government is too big would O argue for tax cuts to close recessionary gaps O for spending increase to close inflationary gaps O advocate increases in government purchases to close recessionary gaps none of the above