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Which of the following describes the role of automatic stabilizers in the economy? 1-Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions. 2-Automatic stabilizers refer to industries that aren\'t subject to the fluctuations of the economy and therefore moderate the effects of recessions. Food, housing, and the military are examples of these industries which are usually more stable than the rest of the economy. 3-Automatic stabilizers are changes in the money supply that occur automatically when inflation or unemployment occurs. 4-Automatic stabilizers are discretionary changes to taxes, government spending, and transfers that Congress makes in attempt to improve the economy.
It is suggested that perfectly competitive firms are price takers. Althought one rarely, if ever, has an opportunity to test this in the real-world, it is equally rare that the customers goes into any business establishment and tells the seller what ..
American-based businesses become more global every day. With changes in national and international demographics, we are seeing many American businesses participate in the global workforce.
Graphically illustrate the total surplus associated with 2 randomly chosen quantities in the market (put this on two separate diagrams).
The data in the first four columns represent price (P) and quantity demanded (Qd) in time 1 (before change in price) and time 2 (after change in price) for a specific good. Note that results should be expressed in absolute terms. For example, -1..
George is going to replace his car in 3 years when he graduates, but now he needs a radiator repair. The local shop has a used radiator, which will be guaranteed for 2 years, or they can install a new one, which is "guaranteed for as long as you own ..
Background info for question below: "For all problems consider a market containing four identical firms, each of which makes an identical product. The inverse demand for this product is P = 100?Q, where P is price and Q is aggregate output. For all ..
Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.
Which of the following possible in-kind transfers do you think raises the true income of recipients the most: free golf lesson, free transportation on public buses, or free food? Why?
Assuming that land and labour are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Texas.
Crowding out in the loanable fund: what does it mean? Please define: stock, bond, dividend, risk free investment. What are the functions of money? What is the difference between fiat money and commodity money?
Based on the current events in our economy, please keep this in mind. When interest rates are held more or less at a constant rate and price risk remains stable, financial leverage does not greatly impact changes is stock return at the market level. ..
Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
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