To determine the size of the automatic stabilizer in 2011,
A)calculate the difference between the taxes and spending proposed for 2011 and the actual taxes and spending in 2011.
B)compare the budget proposed by the president with the budget passed by Congress.
C)compare the size of the budget calculated by the president with the size of the budget calculated by the Congressional Budget Office (CBO).
D)read the language of the FY2011 Budget.
E)None of these

Question

Quizplus · Accepted Answer

The size of the automatic stabilizer can be determined by calculating the difference between the taxes and spending proposed for the year and the actual taxes and spending in that year. This calculation will help in understanding the impact of automatic stabilizers on the economy. The other options mentioned are not relevant to determining the size of the automatic stabilizer.

To Determine the Size of the Automatic Stabilizer in 2011