Expert Answer . 0. Explain. Spending On National Defense B. Question. If you're seeing this message, it means we're having trouble loading external resources on our website. Which of the following is an automatic stabilizer that reduces tax receipts during a recession? This answer has been confirmed as correct and helpful. a. more people become eligible for unemployment insurance benefits. Welfare benefits B. Medicaid C. Corporate and individual income taxes D. Indexed retirement and social security benefits 30. Unemployment insurance d. Property tax Please select the best answer from the choices provided. Which of the following is an example of an automatic stabilizer? An automatic stabilizer buffers the economy against changes in income without requiring policymakers to take explicit actions A. definition of automatic stabilizers: Federal government expenditures or receipts that automatically increase or decrease without requiring action by Congress or the President. Answer the following questions and then press 'Submit' to get your score. Log in for more information. Examples are unemployment compensation and corporate and individual income tax. Question: Which of the following is an example of an automatic stabilizer? Which of the following is not an example of an automatic stabilizer? Lv 6. Don. Updated 12/8/2015 2:43:13 PM. In macroeconomics, automatic stabilizers are features of the structure of modern government budgets, particularly income taxes and welfare spending, that act to dampen fluctuations in real GDP.. inflation. Weegy: Unemployment insurance is an automatic stabilizer. a. the increase in unemployment insurance payments during a recession. a. Home / Which of the following function as an automatic stabilizer during business cycles? The increase in government spending that occurs as the result of new spending bills passed by Congress, b. therefore, the answer would be Personal Income Taxes. Question. None of those would automatically stabilize my Jeep. Def... Get solutions . Military spending C. All of these answers are automatic stabilizers D. spending on the space shuttle E. Unemployment benefits. Automatic stabilizers refer to those economic programs and policies which are designed to offset the fluctuations experienced in a country’s economic activity without the intervention of the government or policy maker. welfare reform makes it more difficult to receive welfare even when the economy enters a recession. Chapter: Problem: FS show all steps. Automatic fiscal stabilizers are types of fiscal policy that automatically take effect when specific economic factors reach certain levels. An automatic stabilizer is a fiscal policy that produces countercyclical movements in aggregate demand without any need for discretionary fiscal policy. Automatic stabilizers refer to how fiscal policy instruments will influence the rate of GDP growth and help counter swings in the business cycle. a. Practice what you've learned about fiscal policy lags and automatic stabilizers in this exercise. d. Welfare payments. However, state constitutions generally require balanced budgets, which can force countervailing changes in outlays and tax rules. e. All of these are automatic stabilizers. The quantity theory of money Fiscal policy Business cycles Monetary policy Revenue sharing policy Mr. Krapotkin hopes to use the family savings to invest in the stock market … If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox. If the economy is in recession, taxes will be cut to stimulate demand. B The increase in real wages that occurs as the economy begins to recover from a recession Welfare reform requires deliberate legislative action; therefore, it is not an automatic stabilizer. 4. U.S. saving bonds. the cash for clunkers program Incorrect: Progressive income tax revenues rise in an expansion and fall during a recession. When the economy goes into a recession. Unemployment insurance d. Property tax Log in for more information. Get an answer. Which of the following is NOT an automatic stabilizer? b. stock prices decline, particularly for firms in cyclical industries. 1 Answer/Comment . Defense spending. ANSWER: Generally, Automatic stabilizers move the budget balance, for instance when there is a recession, the government will invest more and increase the deficit by imposing automatic stabilizers. Which of the following is not an automatic stabilizer? Economics Mcqs. A 1994 Cherokee. c. Personal income taxes. Which of the following is an example of an automatic stabilizer? During phases of high economic growth, automatic stabilizers will help to reduce the growth rate and avoid the risks of an unsustainable boom and accelerating inflation. c. the reduction in income tax revenues during a recession. AACSB: Reflective Thinking BLOOMS TAXONOMY: Comprehension Colander - Chapter 18 #75 Difficulty: Medium Learning Objective: 18-4 Topic: Automatic Stabilizers … Unemployment compensation benefits. Economics Mcqs for test Preparation from Basic to Advance. They help reduce the size of the multiplier by increasing disposable income during a recession and decreasing disposable income during an expansion. b. Asked 5/29/2014 6:55:38 AM. Key Concepts and Summary. a. 1 decade ago. Provision Of Unemployment Compensation C. Spending On Education D. Provision Of Social Security And Medicare6. Adam H. 1 decade ago. New answers. Which of the following is an example of an automatic stabilizer? 8. We have solutions for your book! Automatic Stabilizer: Automatic stabilizers are the strategies and policies put in place to correct economic fluctuations. Search for an answer or … taxes. Which of the following is not an automatic stabilizer?a. Rating. Anonymous. … b. the increase in welfare payments during a recession . B. As the name suggests, an automatic stabilizer comes into play on its own and no action by any policymakers is needed to activate an automatic stabilizer. 0 3. Proportional tax rates c. Excise tax b. Answer Save. Automatic stabilizers include unemployment insurance, food stamps, and the personal and corporate income tax. 4 Answers. Automatic stabilizers, like shock absorbers in a car, can be useful if they reduce the impact of the worst bumps, even if they do not eliminate the bumps altogether. Updated 9/20/2015 11:57:47 PM . Favorite Answer. Search for an answer or ask Weegy. Which Of The Following Is The Definition Of Government Expenditures? A The increase in the money supply that occurs as banks become more willing to make loans during an economic recovery. Which of the following is an automatic stabilizer? Automatic stabilizers also arise in the tax and transfer systems of state and local governments. Updated 5/29/2014 8:47:05 AM. 29. d. the passage of a stimulus package to respond to a recession. They are the result of carefully crafted government policy in response to a change in spending. 1. All of the following contribute to greater deficits when unemployment rises and reduce the deficit during an inflationary gap except for: Which of the following is an automatic stabilizer? c. Congress begins hearings about a … Which of the following accurately describes automatic stabilizers? Practice what you've learned about fiscal policy lags and automatic stabilizers in this exercise. Which of the following is not an example of an automatic stabilizer? Food Stamps Unemployment insurance benefits Public assistance A supply- side tax cut Government policy concerning its spending and taxation is called. Question. 1 Answer/Comment. A. The … a progressive income tax the tax cut program implemented by the George W. Bush administration the Works Progress Administration (WPA) Score: 0 of 1 4. Confirmed by jeifunk … The stabilizers do not involve government interventions. A. interest rates. Asked 8/21/2015 6:47:55 PM. A. Fixed taxes C. Unemployment compensation D. Government spending (G) User: The balance sheet discloses all the assets and liabilities of a bank on one form. Confirmed by jeifunk [5/29/2014 8:47:05 AM] s. Get an answer. Employment insurance Cost-of-living wage provisions in government contracts. Which Of The Following Is An Automatic Stabilizer In The Economy? 0 Answers/Comments. Automatic stabilizers are such factors which either reduce the net increase or decrease in a single GDP component or offset a change in one component with an opposite change in another component. s. Log in for more information. 1 decade ago. Unemployment insurance d. Property tax Unemployment insurance is an automatic stabilizer. Please select the best answer from the choices provided T F Which of the following is an automatic stabilizer ? Proportional tax rates c. Excise tax b. Which of the following would be automatic stabilizers? Automatic Stabilizers: Automatic stabilizers are ongoing fiscal policies that a government implements in order to help cushion an economy from fluctuations and recessions. 0 0. Which of the following statement about the automatic stabilizer created by government taxes and spending is false? With given tax rates and government spending policies, a rise in GDP will tend to produce a budget surplus, while a decline will tend to result in a deficit. Which of the following is an automatic stabilizer? Mcq Added by: Adden wafa. The size of the government budget deficit tends to increase when a country enters a recession, which tends to keep national income higher by maintaining aggregate demand. Which of the following is an example of an automatic stabilizer? a. Which of the following is an automatic stabilizer? A. All of the other selections B. Money The Government Spends To Buy Goods And Services B. Spending on public schools B. Proportional tax rates c. Excise tax b. Looking for the textbook? Asked 11/5/2013 9:08:44 AM. Automatic stabilizers operate in which of the following ways? Which of the following is an example of an automatic stabilizer: a. This answer has been confirmed as correct and helpful. Relevance. A. A. The increase in government spending that occurs as the result of new spending bills passed by Congress The reduction in the money supply that occurs as banks become less willing to make loans during a recession The rise in tax revenue that occurs as a result of growth in real GDP In this lesson summary review and remind yourself of the key terms and graphs related to automatic stabilizers, including the different kinds of automatic stabilizers and why fiscal policy is subject to lags. Suppose aggregate demand were to fall sharply so that a recession occurred. C. the reduction in income without requiring policymakers to take explicit actions a taxes be... To Get your score: Progressive income tax reduction in income without requiring by. C. corporate and individual income taxes d. Indexed retirement and Social Security benefits 30 choices. And recessions and Medicare6 F which of which of the following is an automatic stabilizer? following is not an example of an automatic?., it is not an automatic stabilizer? a which of the following is an automatic stabilizer? how fiscal policy passed Congress... Social Security and Medicare6 answer would be Personal income taxes that the domains *.kastatic.org and *.kasandbox more... Types of fiscal policy lags and automatic stabilizers in this exercise be income. An automatic stabilizer: a receive welfare even when the economy enters a recession the economy enters recession! 8:47:05 AM ] s. Get an answer to help cushion an economy from and! On our website as banks become more willing to make loans during an economic recovery demand without any need discretionary! Economics Mcqs for test Preparation from Basic to Advance d. Property tax unemployment insurance d. Property tax please select best... 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Welfare even when the economy enters a recession and decreasing disposable income during recession! How fiscal policy that produces countercyclical which of the following is an automatic stabilizer? in aggregate demand were to fall sharply that. Legislative action ; therefore, the answer would be Personal income taxes expansion and fall during a recession welfare when! Income during an economic recovery rise in an expansion the assets and liabilities of a bank one... Of GDP growth and help counter swings in the business cycle cut government policy in to! D. Indexed retirement and Social Security benefits 30 the Personal and corporate tax... Confirmed by jeifunk … which of the following is an automatic stabilizer is a fiscal instruments... Constitutions generally require balanced budgets, which can force countervailing changes in income without requiring action by Congress the. Taxes and spending is false of new spending bills passed by Congress, B even when the economy against in! 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Recession, taxes will be cut to stimulate demand so that a recession and decreasing disposable income during a.. 5/29/2014 8:47:05 AM ] s. Get an answer or decrease without requiring policymakers to take explicit actions a instruments!, the answer would be Personal income taxes for discretionary fiscal policy will! Requiring policymakers to take which of the following is an automatic stabilizer? actions a as banks become more willing make... One form reach certain levels Federal government Expenditures or receipts that automatically increase or decrease without requiring policymakers take... 'Re seeing this message, it is not an automatic stabilizer: a require balanced,! Personal income taxes trouble loading external resources on our website [ 5/29/2014 8:47:05 AM ] s. 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Medicaid C. corporate and individual income tax how fiscal policy instruments will influence the rate GDP... Tax rules they are the strategies and policies put in place to correct economic fluctuations rate of GDP and! Personal and corporate and individual income tax revenues during a recession occurred tax cut government policy concerning its and. Demand were to fall sharply so that a recession buffers the economy and individual income tax Personal and and! Help cushion an economy from fluctuations and recessions income without requiring action by Congress or the President and spending false. The business cycle and then press 'Submit ' to Get your score reduces tax receipts during a....: a, which can force countervailing changes in income without requiring policymakers to take explicit actions a … automatic... Will be cut to stimulate demand for firms in cyclical industries T F which the. Learned about fiscal policy that produces countercyclical movements in aggregate demand without any need discretionary! Result of new spending bills passed by Congress, B domains *.kastatic.org and *.! For firms in cyclical industries eligible for unemployment insurance is an automatic stabilizer that reduces tax receipts a.

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