Which of the following is an example of an automatic stabilizer? A. an increase in government...

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

A. an increase in government military spending
B. government stimulus checks due to the Corona virus
C. an increase in consumption spending
D. sales taxes
E. progressive income taxes

Expert Solution

Option B

government stimulus checks due to the Corona virus.

Automatic stabilizers are ongoing fiscal policies that a government implements in order to help cushion an economy from fluctuations and recessions. This is mainly done through taxes and government spending. Automatic stabilizers are used to offset fluctuations in a country's economic output. These help stimulate the economy when it is in a recession and prevent it from growing too rapidly when the economy is booming. During a recession, automatic stabilizers are used to decrease taxes and increasing government spending.

A stimulus check is a check sent to a taxpayer by the U.S. government. Stimulus checks are intended to stimulate the economy by providing consumers with some spending money. When taxpayers spend this money, it will boost consumption and drive revenues at retailers and manufacturers and, thus, spur the economy.At present US economy is on the verge of recession.Due to lockdowns the economic activity is stopped. Stimulus check will boost the economy by stimulating demand, consumption and keep the economy growing.

Rahul Sunny answered 8 months ago

Which of the following is not an automatic stabilizer?

Which of the following is not an automatic stabilizer? Transfers to persons. Public debt charges. Personal income tax. E.I premiums.

Provide an example of government policy that acts as an automatic stabilizer. For the goal of...

Provide an example of government policy that acts as an automatic stabilizer. For the goal of stabilization policy, what advantage does automatic stabilization have over discretionary changes in government spending?

1) Which of the following is NOT an automatic stabilizer? a) Unemployment insurance benefits b) Public...

1) Which of the following is NOT an automatic stabilizer? a) Unemployment insurance benefits b) Public assistance c) A supply-side tax cut d) Food stamps 2) In general, we could say that a) conservative economists favor a larger economic role for government and liberals favor a smaller role. b) both liberals and conservatives favor a larger economic role for government. c) liberal economists favor a larger economic role for government and conservatives favor a smaller role. d) liberals and conservatives...

A federal budget deficit acts as an automatic stabilizer because: government tax revenues decrease during a...

A federal budget deficit acts as an automatic stabilizer because: government tax revenues decrease during a recession. unemployment benefit payments decrease during a recession. tax receipts decrease during expansionary periods. Medicare payments increase during expansionary periods.

Identify an “automatic stabilizer” and describe the impact it has had on the economy in recent...

Identify an “automatic stabilizer” and describe the impact it has had on the economy in recent years.

For a radiograph acquired with automatic exposure control, an increase in which of the following factors...

For a radiograph acquired with automatic exposure control, an increase in which of the following factors will increase patient skin dose the most? A. Tube current (mA) B. Tube voltage (kV) C. Patient thickness D. patient-to-detector distance E. Source-to-detector distance

Which of the following would be an example of automatic fiscal stabilization? Select one: a. A...

Which of the following would be an example of automatic fiscal stabilization? Select one: a. A decrease in income due to a decrease in government expenditure b. A decrease in tax revenue due to a lower tax rate c. A decrease in income due to an increase in the tax rate d. An increase in tax revenue due to an increase in investment

#1 Please identify what they are (i.e., discretionary fiscal policy, monetary policy, or automatic stabilizer) and...

#1 Please identify what they are (i.e., discretionary fiscal policy, monetary policy, or automatic stabilizer) and explain why. 1a) A terrible recession occurs as a result of a bubble in the housing market bursting, and government-funded unemployment compensation is paid out to laid-off workers. 1b) As the economy heats up, the resulting increase in equilibrium GDP results in higher income tax payments, which dampen consumption spending somewhat. 1c) To stem an overheated economy, the president, using special powers granted by...

Which of the following is an example of crowding out? a. An increase in taxes increases...

Which of the following is an example of crowding out? a. An increase in taxes increases interest rates, causing investment to fall. b. A decrease in private savings increases interest rates, causing investment to fall. c. An increase in government spending increases interest rates, causing investment to fall. d. A decrease in the money supply increases interest rates, causing investment to fall.

1. Which of the following is an example of a transfer payment by the government? Group...

1. Which of the following is an example of a transfer payment by the government? Group of answer choices The government provides unemployment benefits to its citizens. The local government invests in building a community center. The government raises funds in order to build bridges and roads. The government provides healthcare to its citizens at a subsidized price. The government provides concessional rates to senior citizens who use public transport. 2. The GDP gap is: Group of answer choices the...

Question